Autogrill and Alpha agree on takeover offer

Gavin Lipsith

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The two companies have officially announced the agreed cash offer Autogrill will make for the entire share capital of Alpha Airports Group

Autogrill has officially launched its offer for the entire issued and to be issued share capital of Alpha Airports Group, valuing the company at about £193.6m ($383.3m). The £1.10 ($2.20) per share offer—which represents a 58.3% premium on Alpha’s valuation on May 29, the last trading day before Autogrill made its initial announcement saying it was reviewing options regarding Alpha—has been unanimously recommended by the Alpha board.

Autogrill’s offer for Alpha is conditional upon it receiving shares carrying at least 50% of the voting rights in Alpha Airports. Autogrill now owns 42.7% of Alpha, and has signed a non-binding letter of intent to purchase Servair’s remaining 9.1% holding, granting Autogrill the exclusive option to purchase until June 11. Combined with the 0.1% held by Alpha’s directors, Autogrill has already received commitments for 51.9% of Alpha’s shares.

In the announcement Autogrill said that the deal would “significantly enhance the diversity of offerings and quality of services to people on the move, and the airlines and airports which serve them”. In particular it said that Autogrill's experience in airport catering and retail would complement and expand the portfolio of Alpha Airports, while Alpha’s airline catering business could provide a new opportunity for Autogrill.

Autogrill CEO Gianmario Tondato said: “Autogrill places significant importance on the UK and sees Alpha Airports as the right player to gain a meaningful exposure to this attractive market as well as in other important countries in which Alpha Airports operates. We very much look forward to working with Alpha Airports' management team to expand further the combined business.”

Alpha Airports chairman Martin Flower said: “This is excellent news for Alpha Airports'  shareholders, customers, suppliers and employees. Shareholders are getting £1.10 for each share, a 58.3% premium to the closing price [on May 29], in a compelling cash offer with a minimum of conditions attached. For Alpha Airports' other stakeholders the acquisition by Autogrill represents a unique opportunity to develop Alpha Airports on a truly global scale, enhance its service offering and build on its market-leading position.

“As part of Autogrill, the world's biggest provider of food and beverage and retail services for travellers, Alpha Airports will be able to leverage its position as a leading service provider to the world's airlines and airports underpinned by its reputation for service excellence.”