Seven Group Holdings has launched an off-market takeover bid to acquire the remaining interest it does not already hold in National Hire Group, parent company of the Coates Hire and Allight equipment hire chains.
The Kerry Stokes-owned SGH said in a statement the $3.00 per share offer was being made to address the low liquidity of National Hire’s shares on the Australian Securities Exchange.
The $3.00 per share offer price includes a condition that SGH would be entitled to compulsorily acquire the remaining interest in National Hire if acceptances reach 91.55 per cent, at an increased price of $3.60 per share.
SGH already owns a 66.2 per cent stake in the hire services firm.
The company said it would pursue a de-listing of National Hire from the ASX on successful completion of the takeover.
“Despite the fact that the ASX listing is not providing the advantages for which SGH would have hoped in terms of shareholder liquidity, National Hire incurs significant additional cost to maintain the listing, including listing fees and compliance costs,” SGH’s statement said.
At 9:25AM (WST) SGH’s shares were down 1.2 per cent to $8.44, while National Hire remains in a trading halt it entered yesterday. Its stock last traded at $1.88.