Takeovers: Woolworths makes a late bid for API, Crown rejects Blackstone’s offer (for now)
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While Sigma withdrew its offer, Wesfarmers signed a scheme implementation deed three weeks ago at $1.55 per share. Today, Woolworths has made a $1.75 per share bid and said it would be willing to explore alternative control transaction structures to provide more certainty for API shareholders.
The board of API told shareholders it would let Woolworths undertake confirmatory due diligence and said the deal might be a better one. But for now it told shareholders to take action and reminded them the deal with Wesfarmers gives Wesfarmers the chance to match the offer.
API shares rose by another 14% this morning and are up 42% in the last year. Meanwhile Woolworths and Wesfarmers slightly declined.
Another company that has been a takeover target is Crown Resorts (ASX:CWN). Today, it rejected the offer currently on the table from private equity firm Blackstone.
Despite the deal being a healthy premium to its current share price the board said it did not represent compelling value.
Nonetheless, it gave them the chance to do further due diligence if it wanted to come back with a better offer.
“The Crown board is focussed on maximising value for Crown shareholders and will carefully consider any proposal that is consistent with this objective,” the board said.
Aussie Broadband will pay $5.75 per share which is just over $340 million.
“We believe Over the Wire is a great match to complement our current range of services,” declared Aussie Broadband boss Phillip Britt.
“It’s a high quality business in a large and growing segment of the Australian telecommunications market.
“After several weeks of getting to know the company’s senior team, we very much look forward to welcoming OTW to the Aussie Broadband family.”
It will bring an end to Over The Wire’s 6 year stint on the ASX, having listed in late 2015 when it listed at $1 per share. Aussie Broadband has been listed for little over a year but also listed at $1 per share and is currently trading above $5.