Emeco says merger on-track despite new proposal

Emeco Holdings has sought to reassure investors that its planned three-way tie-up with Orionstone and Andy’s Earthmovers is progressing smoothly, despite news that one of the parties involved has received a takeover bid of its own.

Perth-based Emeco said today the merger with Orionstone and Andy’s was set to be completed by early January, and that the three companies had all previously agreed to various exclusivity agreements, including ‘no shop and no talk’ restrictions.

However, media reports today said Queensland-based Orionstone had received an unsolicited bid for the business from asset manager Viburnum Funds, on similar terms to that of the three-way merger with Andy’s and Emeco.

“We remain committed to the recapitalisation and merger with Emeco and Andy’s to create a company with a stronger financial position that is able to more effectively service and add significant value to our customers,” Orionstone chief executive Ashley Fraser said.

Emeco managing director Ian Testrow and Andy’s managing director Andy Hoare also backed their existing deal, saying it would help recapitalise and diversify their existing businesses.

Emeco shares were 1.5 per cent lower to 6.6 cents each at the close of trade.