PERTH (miningweekly.com) – The majority of directors of takeover target UGL have urged shareholders to accept an offer from fellow-listed Cimic Group Investments.
Cimic in October launched a A$525-million takeover offer for UGL, offering shareholders A$3.15 a share for their holding in the ASX-listed engineering group.
The offer price represented a 47.2% premium to UGL’s last closing price on October 7, and a 44.2% premium to the company’s one-month volume-weighted average price. The offer price is final and unconditional.
UGL said on Monday that a board-appointed independent expert had determined the value of UGL on a 100% controlling interest base ranged between A$3.11 and A$3.94 a share, and as the Cimic offer fell within this range, the offer was deemed both fair and reasonable.
Nonexecutive director Robert Kaye has recommended, however, that shareholders reject the offer, saying the offer price may not reflect the full underlying value of UGL.
The takeover offer will close on November 25.
Edited by: Creamer Media Reporter
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