Metro Performance Glass (ASX:MPP) Receives Acquisition Proposal
Acquisition Proposal Details
Metro Performance Glass (ASX:MPP) has received an unsolicited non-binding acquisition proposal from CCP VI Bidco (NZ) Ltd, a company managed by Crescent Capital Partners. The proposal suggests a takeover offer for all Metro shares at a price of 8c per share, subject to several conditions.
The successful completion of this acquisition would require due diligence, approval from both the Board of CCP VI Bidco and the Investment Committee, along with necessary approvals from the Commerce Commission and, if necessary, the Overseas Investment Office. The proposal also hinges on reaching agreements with the company’s banks regarding the roll-over of existing financial facilities and achieving at least 90% acceptance of the takeover offer, or at least 75% shareholder approval under a scheme of arrangement.
Directors’ Response and Considerations
Metro’s directors have expressed openness to exploring all options presented by CCP VI Bidco’s interest. However, they raised concerns about the risks involved, particularly the higher inherent risk associated with due diligence conducted by a competitor. Additionally, the directors noted that a combination with Viridian could face challenges in gaining Commerce Commission approval, which often involves lengthy and uncertain timelines. They highlighted that this could place Metro’s business and financing arrangements in a precarious position and adversely impact operational plans.
Given these uncertainties and the recent nature of the proposal, the directors have not yet assessed whether 8c per share represents fair value or not. They are still deliberating on the proposal while also considering previously discussed options referenced in announcements on 28 November and 16 December 2024.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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