Grant Samuel values Methven shares at up to $1.60, GWA's offer price
By Jenny Ruth
Feb. 11 (BusinessDesk) - 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)
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