German metering company Techem said today it will evaluate an unsolicited takeover offer from Australia's Macquarie Bank that values the company at around €1.1 billion.
Yesterday, Macquarie made a €44-a-share offer for Techem after management declined to support its bid. Macquarie European Infrastructure Fund II (MEIF II) had already acquired a 17 per cent stake in Techem.
Techem shares jumped 17 per cent to finish at €49.31 yesterday as the market bet on an improved offer from Macquarie.
The bid comes a week after a group led by Macquarie won the battle to buy UK utility Thames Water from Germany's biggest power firm RWE for £4.8 billion pounds excluding debt.
Financial investors such as Macquarie are attracted to water and metering companies because of their stable cash flows. Techem provides energy and water metering services for some 7.4 million households in Europe.
Macquarie had said it would retain the Techem brand, adding that it had no plans to restructure Techem further.
Analysts said Techem was unlikely to get a counter bid from another player in the industry because such a bid could lead to antitrust issues.
The metering industry is largely dominated by Techem and unlisted Ista.