Western Australian-headquartered plantation timber manager ITC Group Ltd shares remain suspended from trading on the Australian Stock Exchange, ahead of an expected announcement next week, as takeover suitor Hatmore Pty Ltd increases its bid.
ITC announced a trading halt to its shares on Wednesday, and then a voluntary suspension of shares after the trading halt was lifted.
Speculation over the immediate direction of the company has mounted during the week, and the proposed takeover of ITC by Futuris Corporation subsidiary Hatmore has only added to this.
Today, wholly-owned Futuris subsidiary Hatmore increased its takeover bid for ITC and extend the offer period until June 30.
Hatmore has increased the cash component of its offer from $1.30 to $1.35 for each ITC share.
The scrip consideration under the offer will remain unchanged, but ITC shareholders who have already accepted the offer will be entitled to make a fresh election as to which consideration (cash or scrip) they will receive.
Last month Futuris announced an unconditional scrip/cash offer to increase its shareholding in ITC.
Futuris already holds a 55 per cent interest in ITC. Its inital offer to all ITC shareholders was three Futuris shares for every five ITC shares held, or $1.30 cash, and was scheduled to close on June 27.
ITC directors have recommended shareholders take no action in regard to the takeover bid until the release of a target statement.
ITC has more than 140,000 plantation hectares under management across all mainland states, and is also the country's largest timber processor.
The board of ITC has resolved to declare and pay a fully franked dividend of $0.05 cents per ITC Share.
