Biffa Executives Said to Forgo $39 Million Windfall From IPOBy and
Executives at U.K. waste-management group Biffa Plc are abandoning plans to reap a 30 million pound ($39 million) payday from the company’s upcoming initial public offering, people familiar with the matter said.
Management will no longer sell their shares in the IPO after getting push back from potential investors, said the people, who asked not to be named because the deliberations are private.
Potential investors in the company’s London IPO, which is set to raise as much as 313 million pounds next month, had expressed concern that the firm’s leadership would use the payout as an opportunity to move on, people familiar with the plans said previously. A spokeswoman for the company declined to comment.
Biffa is offering shares to investors at a range of 220 pence to 270 pence each, which implies a market value of as much as 675 million pounds, according to a term sheet sent to investors Thursday. Proceeds from the sale will be used to help pay an ongoing tax dispute and other debts, the company has said.
In documents distributed to potential investors, the company included a commitment that executive directors and some members of senior management will increase their shareholdings as part of the IPO, two of the people said.
Biffa was taken private in 2008 by a consortium of investors led by Montagu Private Equity, Global Infrastructure Partners and Uberior Co-Investments.