Campbell Brothers has increased its takeover bid for Perth-based metallurgical testing specialist Ammtec to $3.80 per share from $3.35 per share.
Campbell Brothers has increased its takeover bid for Perth-based metallurgical testing specialist Ammtec to $3.80 per share from $3.35 per share.
The move comes after Campbell Brothers only secured 11 per cent of its target with its original offer.
In a statement, Campbell Brothers said the increased offer through its wholly owned subsidiary Australian Laboratory Services, represents a significant 51 per cent premium to Ammtec's closing price of $2.51 on May 18.
Campbell Brothers is also offering an improved scrip offer of 4 Campbell Brothers shares for every 33 Ammtec shares, implying a value of $3.73 per Ammtec share.
Earlier this month Campbell Brothers queried Ammtec's decision to lift its final dividend by 10 per cent to 11 cents a share, given earnings per share actually declined 25 per cent in 2009-10 due to dilution related to capital raisings last year.
The offer is open for acceptance by Ammtec shareholders until 5.00pm Perth time on 22 September.
This is an extension on its original takeover bid from August 23.
The company said if it boosted its stake in Ammtec to 30 per cent it would declare the offer unconditional and accelerate payments to shareholders to five business days after acceptance.
The Board of Ammtec is considering its response to the latest Campbell Brothers announcement.
It has advised shareholders not to take any action until they receive the Directors' formal recommendation.
The key points of the offer are outlined below:
Key points:
- Increased cash offer of $3.80 per share represents a significant 51% premium to Ammtec's closing price of $2.51 on 18 May 2010, the last trading day prior to announcement of ALS' intention to make an offer for Ammtec
- Improved scrip offer of 4 Campbell Brothers shares for every 33 Ammtec shares, implying a value of $3.73 per Ammtec share (based on 2 day VWAP for Campbell Brothers shares up to 26 August 2010)
- Commitment to declare offer unconditional and settle on T+5, subject to obtaining a 30% interest in Ammtec by 15 September 2010
- Payment of broker handling fee
- ALS currently has an 11.1% interest in Ammtec, the largest single interest in Ammtec shares
- c. 17% of Ammtec's register has changed hands since announcement of ALS' intention to make an offer