Madison Bidco agree terms concerning Velocys takeover

The boards of directors of Madison Bidco Limited and Velocys have reached an agreement concerning the takeover of the sustainable fuels technology company.
It has been reported that terms and conditions of a recommended cash acquisition by Bidco of the entire issued, and to be issued, ordinary share capital of Velocys has been agreed.
It is intended that the acquisition will be implemented by way of a court sanctioned scheme of arrangement under Part 26 of the 2006 Act. Under the terms, each Velocys shareholder will be entitled to receive 0.25 pence in cash.
In addition, conditional on the acquisition becoming effective, Bidco has agreed to provide up to $40 million (approximately €37 million) of growth capital which is expected to ensure that Velocys and its management have the capital resources needed to deliver
its medium-term strategic plans.
• In connection with the acquisition, the Carbon Direct Fund has agreed to provide a secured bridging loan of £3.5 million (€4 million) with a view to providing sufficient capital for Velocys through to the acquisition becoming effective.
Velocys is behind the Altalto Immingham project which aims to deliver a waste-to-SAF facility.