21/11/2011 - 15:42

Seven increases bid for National Hire

21/11/2011 - 15:42


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Seven increases bid for National Hire
Seven Group Holdings managing director Peter Gammell.

Seven Group Holdings has upped its takeover bid for National Hire Group, after its initial offer of $3.00 per share was rejected by the target’s major shareholder, Tasmania-based Caterpillar dealer Dale Elphinstone, last month.

Seven announced today it would now offer National Hire shareholders $3.35 per share, rising to $3.75 per share if it gains a stake over 91.55 per cent.

National Hire shareholders who previously accepted the lower offer will automatically be entitled to receive the higher price, Seven Group said.

Seven said two of National Hire’s three independent directors, Stephen Donnelly and Clive Isenberg, were now in support of the bid, and would recommend shareholders accept the offer.

Mr Elphinstone’s private investment vehicle, Elph Pty Ltd, a 21.9 per cent shareholder in National Hire, has not accepted the offer.

In early October Mr Elphinstone urged stock holders to reject Seven’s offer, on the bassis that it was less than the full underlying value of the company, and less than the lower end of a value range determined by an independent expert.

Seven’s offer is scheduled to close on December 5.

At close of trade today, Seven Group stocks were down 0.5 per cent, to $7.16, while National Hire shares were down 3.5 per cent, at $3.01.


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