John Laing accepts Allianz’s $1.8 billion bid

John Laing PLC, a British construction company headquartered in central London, announced Friday it has accepted a £957.5 million ($1.8 billion) cash offer from a private equity fund owned by the German financial giant Allianz SE, after taking off support for a previous offer by an Anglo-Australian asset management company Henderson Global Investors.

John Laing, the specialist private finance initiative manager and owner of the Chiltern rail franchise, previously agreed to a £887 million pound ($1.67 billion) offer from Henderson, which negotiated an £8.9m break fee if Laing accepts any other offer.

"The directors of John Laing have withdrawn their recommendation of the Henderson proposals and are now recommending that John Laing shareholders accept the Allianz offers," John Laing's Chairman William Forrester said.

So far, holders of 51.67 percent of Laing shares have given their both irrevocable and non-binding consents to Allianz’s offer. “We believe that the Allianz Ordinary Offer, which is at a clear premium to the value offered under the Henderson Proposals, provides John Laing shareholders with an attractive cash price which fully reflects the quality of John Laing's portfolio and established position in PFI/PPP markets,” Forrester said.

The offer price of Alliance Infrastructure Holding Limited, part of German insurer Allianz Group, is pitched at a 39.7pc premium to John Laing’s closing price on September 13, the day before it disclosed it had received an approach and 8.5 percent to the Henderson offer, announced on 19 September 2006.

Amidst the bidding war, the shares of John Laing jumped 10.1 percent to 391 pence ($7.37) in morning trading on the London Stock Exchange, above Allianz's offer of 385 pence ($7.25) per share.

Telling about the benefits, under the deal, Laing would get, Thomas Putter, director of Allianz Infrastructure Holdings, said “Laing would benefit from accessing funds which attract a more competitive cost of capital and an international network of financial services specialists.”

He further said, “The Allianz Group will provide capital to support the growth of the Laing business to enhance its position as a leading PFI/PPP provider in the UK and support its international expansion.”

John Laing, which is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index, is a specialist owner, operator and manager of public-sector infrastructure including the British Ministry of Defence, Chiltern Railways and roads in Norway and Poland. It claims to be the only listed English company wholly focused on public-private partnerships (PPP).

Allianz Infrastructure Holdings Ltd., is a 100% owned takeover vehicle created by Allianz Alternative Assets Holding GmbH, a part of the Munich, Germany-based insurance group.