The Seven Group (SGH) has made a takeover offer for the National Hire Group.
While SGH already owns a 66.2% share of National through its subsidiary Westrac, it is aiming to wholly acquire the hire and rental company.
At $3 per share the offer is unconditional, apart from there being no ‘prescribed occurrence’, or capital change.
It says this price is “a 60% premium on the closing price of National Hire shares on 16 September, the last trading day before Seven announced the offer”.
SGH say despite the hire and rental company’s shares trading at a discount, and the fact that “the ASX listing is not providing the advantages for which SGH would have hoped in terms of shareholder liquidity and incurs significant additional cost to maintain the listing,” it wants to remain invested in National, but will de-list the company once it acquires it.
The Seven Group goes on to say that while it would prefer to acquire 100% of the company, it will need to acquire at least 75% of National’s shares, otherwise it will have to compulsorily acquire the remaining shares in National not owned by SGH.
National Hire owns AllightSykes and has a 46% investment in the Coates Group.