Mercantile tells Yellow Brick Road shareholders: accept or else
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Sir Ron Brierley’s Mercantile has told Yellow Brick Road shareholders its takeover offer is “best and final” — a month after YBR chairman and reality TV star Mark Bouris slammed it as “grossly inadequate”.
Mercantile posted an update to the ASX this morning declaring the offer was “best and final and will not be increased or extended”.
Yellow Brick Road investors (ASX:YBR) were told to accept the offer “as soon as possible” before it closed on October 19.
There’s been a back-and-forth between financial adviser Yellow Brick Road and corporate raider Mercantile (ASX:MVT) over the past couple of months ever since the latter lobbed a low-ball bid for YBR.
Mercantile offered YBR shareholders 9c a share, totalling $25.4 million in cash to acquire the company. The shares fell 4 per cent to 11c in early Friday trade and have traded between 8.7c and 19.5c over the past year.
Yellow Brick Road was furious, urging shareholders to completely ignore any and all correspondence in regards to the bid.
Mercantile, led by longtime corporate raider Sir Ron, already owns 19.97 per cent of YBR, a stake it began building in November 2016.
It told investors in a bidder’s statement that it was “disappointed” by the financial performance of Yellow Brick Road and could delist the company if it gains control.
YBR’s last statement on the matter was on October 20, when it outlined in a 68-page document the reasons why shareholders should reject Mercantile’s bid.
“Don’t give up your shares for a grossly inadequate price,” it said. “Don’t let Mercantile profit at your expense.”