Futuris offer

FUTURIS Corporation Ltd, through subsidiary Hatmore Pty Ltd, has announced an unconditional scrip or cash offer to increase its shareholding in its subsidiary, West Perth-based timber processor Integrated Tree Cropping Ltd. Futuris, which is currently the majority stakeholder with a 55 per cent interest in ITC, is offering all ITC shareholders three Futuris shares for every five ITC shares held, or $1.30 cash, payable within seven days of acceptance. The share offer is valued at $1.35 per share based on an imputed price of Futuris shares of $2.25. The offer represents a 30 per cent premium over ITC’s price of $1.04 immediately prior to this announcement and 25 per cent over the three-month volume weighted average price of $1.08 per share to May 10 2006. “ITC has made substantial progress in the development of its operations and management. However, market appreciation of value has been affected by uncertainty about regulatory change and about the capital requirements for growth and corporate opportunities,” Futuris chief executive Les Wozniczka said in a statement.