Viridian takeover interest sends shares soaring

Energy company Viridian – parent of Northern Ireland Electricity – today confirmed it was the subject of takeover interest.

The news sent shares 14% higher as the firm told the stock exchange an approach had been made “which may or may not lead to an offer”. It did not reveal the identity of the interested party.

Shares in the Dublin and London-listed firm were trading at 1231p giving it a market value of around £1.5bn (€2.2bn).

Last week the group, which is Northern Ireland’s main electricity supplier, issued an update which said half-year trading was in line with its expectations.

It has been a busy week for UK utility firms. Takeover deals worth almost £3bn (€4.4bn) were unveiled in the water industry on Monday as overseas investors moved in.

Anglian Water owner AWG backed a proposed deal worth £2.2bn (€3.2bn) from a group led by the asset management arm of Commonwealth Bank of Australia and also involving 3i of the UK. And South East Water was taken over for £665.4m (€984m) by the same Australian-based group that bought nearby Mid Kent Water last year.

Bidders are also circling Thames Water in the £7bn (€10.3bn) auction of the UK’s biggest water infrastructure business.

Meanwhile, British Steel firm Corus was also in the bid spotlight today after Indian rival Tata Steel said it was considering a takeover approach.

Viridian, which also owns Energia and Powerteam, grew out of the former public service electricity supplier in the North (NIE), which was privatised in 1993.

The group has played a leading role in promoting an all-island electricity market in Ireland. On its website its says its “strategy is strongly focused on Irish energy markets, maximising the efficiency of its regulated electricity infrastructure in Northern Ireland and growing an integrated energy business in competitive markets across Ireland”.

Last month, it emerged the creation of a single electricity market for the island was to be delayed four months.

The scheduled “go-live” date of July 1 2007 has been put back to November 1 to make sure there are no last-minute hitches.