Published: Feb. 28, 2023 at 8:51 a.m. ET Norway's Quantafuel AS said Tuesday it is recommending shareholders accept a 1.06 billion Norwegian kroner ($102.5 million) takeover offer from KKR & Co. Inc.-owned recycling and waste management company Viridor Ltd. Quantafuel converts waste plastics back into low-carbon synthetic oil products and has been conducting a strategic review to secure short-term financing and foundation for the company's large-scale roll-out of next generation plastic-to-liquid plants. The company said it is in a challenging financial situation, with a large short-term liquidity shortfall, and needed to secure funds before mid 2Q 2023 to continue its operations. Based on foreseeable market conditions, the financial situation of the company and lack of support for further equity from the company's largest shareholders, the board added that an equity raise is not currently a viable solution. "We see Viridor's cash offer as the only available option that both solves for the short-term financing needed as well as ensuring continued operations for the company," Quantafuel Chief Executive Lars Rosenlov Jensen said. Viridor is offering NOK6.38 a share in cash and Quantafuel's board and executive management as well the company's two largest shareholders--Lego Group owner Kirkbi and BASF SE--together representing 20.9% of the shares have agreed to accept the deal. Write to Dominic Chopping at dominic.chopping@wsj.com

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