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ACT’s latest offer values Caltex as AUD 8.8bn
Posted on Thursday, 13 February 2020 09:37
Alimentation Couche-Tard (ACT) is not out of the running for Caltex Australia as it has sweetened its non-binding, indicative offer for the second time in an attempt to curry favour with the Australian petrol retailer. The Canadian convenience store operator has boosted its AUD 34.50 (USD 23.24 at current exchange rates) apiece bid to AUD 35.25 each, which values the Southern Hemisphere fuel supplier at AUD 8.80 billion. It noted its latest and final offer price, in the absence of a competing proposal, represents a premium of 38.6 per cent to the close of AUD 25.43 on 10th October 2019, being the last trading day prior to the original approach. Any deal would be subject to due diligence, unanimous recommendation from Caltex’s board, and approval by Australia’s Foreign Investment Review Board. Furthermore, the revised proposal comes with a caveat: the Australian petrol station operator cannot carry out asset sales, divestments or acquisitions, capital raising or management initiatives. This includes Caltex ditching its already-announced plans to carve out 250 core freehold sites and sell a 49.0 per cent stake in the resulting property trust via an initial public offering. President and chief executive Brian Hannasch said ACT remains “a committed buyer” of the Australian company in its entirety as it has “long viewed the Asia-Pacific region” as strategic to future growth. Caltex in the meantime is keeping its cards close to its chest by merely saying it is considering the revised proposal in conjunction with guidance from financial and legal advisors. The company had already rejected earlier scheme of arrangements tabled at indicative cash prices of AUD 32.00 and AUD 34.50 apiece. ACT’s revised proposal comes amid reports that EG Group of the UK is looking to team up with a financial partner to gain the fire-power necessary to table its own bid for Caltex. © Zephus Ltd