Aga takeover saga heats up as late offer by Whirlpool sparks bid battle

The City has woken up to a genuine Aga saga as giant US appliances maker Whirlpool gatecrashed a cosy £129 million agreed takeover by an American rival.

Aga Rangemaster, maker of the classic cast-iron country kitchen cookers promoted by model Daisy Lowe as well as more-modern range cookers, said it had received a last-minute approach from Whirlpool Corporation with a potential cash offer.

The move came late in the day with Aga shareholders due to vote on the 185p a share cash bid from catering-equipment maker Middleby Corporation — which first appeared on the scene in June — a week today.

That bid could then go final a week later on September 15.

Aga shares jumped 11%, or 19.75p, to 203p on the news, with traders saying Whirlpool would need to have offered at least a 10% premium to the Middleby offer to get a look in so late in the day.

That pushed the business’s value up to £142 million.

Aga said it had opened its books to Whirlpool after its approach last week.

It added: “The making of a firm offer by Whirlpool remains subject to a number of conditions and there is no certainty that any offer will be forthcoming or as to the terms of any offer.”

The firm said this meant that it would press ahead with the Middleby takeover, which values it at £129 million, to give shareholders the certainty of that bid even if Whirlpool were to walk away.

It has also contacted the UK Takeover Panel to ask it to impose a “put up or shut up” deadline on Whirlpool.

Middleby made no immediate comment on the surprise intervention by Whirlpool but would have the right to top any offer made by its rival.

When it comes to the Whirlpool bid, Aga will be looking for similar or better promises to those made by Middelby. Those included retaining manufacturing in the UK and, crucially, detailed plans to deal with Aga’s massive pension deficit which stood at £84 million at the end of last year.

Aga hired investment bank Rothschild in January to look at options for the business and its pension-fund problem.

Half-year results from Aga showed a pick up in sales and profits but also higher costs for the pension fund.

Growth was driven particularly by a new range of smaller Agas designed for urban living which can be controlled through a smartphone.