Sharechat Logo

Grant Samuel values Methven shares at up to $1.60, GWA's offer price

Monday 11th February 2019

Text too small?

The independent report on Australia-based GWA’s $118 million takeover offer for taps maker Methven says the offer is at the top of its valuation range.

GWA is offering $1.60 per share for Methven via a scheme of arrangement and has also agreed that the company can pay out up to 5 cents per share in dividends, taking the effective price to $1.65.

Grant Samuel has valued Methven shares at $1.41-1.60 and says that includes a premium for control.

Methven’s cornerstone investor, Brendan Lindsay, who owns 19.9 percent, has already given the offer his blessing and directors have committed another 2.1 percent and have unanimously recommended other shareholders accept the offer in the absence of a superior proposal.

To secure control, GWA needs the support of shareholders owning 75 percent of shares voted at a special meeting set for Tuesday, March 12. That is a lower barrier than the 90 percent threshold for a takeover offer under the Takeovers Code.

The shares recently traded at $1.58. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Shorn Fonterra likely to keep ingredients business - Jarden
Fully automated milking several decades away - Dairy NZ
NZ consumer confidence still downbeat in June quarter
NZ dollar largely steady; focus on FOMC
18th June 2019 Morning Report
Farm debt mediation will ensure fair process - O'Connor
MARKET CLOSE: NZ shares fall as heavyweights Auckland Airport, Meridian lose steam
NZ dollar edges higher, awaiting further impetus
Productivity Commission appointments bolster labour, health, environment credentials
Keytone Dairy to buy Australian Omniblend processor for A$22.4M

IRG See IRG research reports