Lighting Corporation's (LCL) board finally got what it wanted – a new offer with the right price this time.
The takeover saga of the distributor of lighting systems distributor looks set to end, after a new offer made by Gerard Lighting Acquisition's has been unanimously recommended by Lighting Corp's board.
Gerard Lighting's new offer is $1.10 cash for each Lighting Corporation share, an increase of 12 cents per share over the previous offer of 98 cents per share.
The 98 cents offer made on 16 November was previously rejected by the Board as ‘inadequate', as was the initial offer of 88 cents per share announced on 8 October 2007.
"The New Offer price represents a 33% premium to the Lighting Corporation share price prior to Gerard Lighting's original offer and a significant increase on the original offer of 88 cents per share," chief executive manager, Dov Mowszowski said.
"Accordingly, the Lighting Corporation Board believes that the new offer represents an attractive price and provides an excellent outcome for all Lighting Corporation shareholders," he said.
Gerard Lighting Acquisitions is a wholly owned subsidiary of Gerard Lighting and has been building a stake in Lighting Corporation for the best part of the year.
Lighting Corporation said results show the business continues its trajectory for strong performance in FY 2008.
Just last week, Mowszowski told shareholders at the company's annual general meeting:
"LCL expects further growth in revenue and market share due to the Group's spread of activities in residential, commercial, industrial, hospitality and government. Order books are strong and reflects this growth."
No doubt this prompted the boost to Gerard Lighting's aspirations and the making of the new offer.
The offer will be reduced by any dividends payable during the offer period, and is subject to a minimum acceptance condition of 90%.
The Mowszowski family is Lighting Corporation's largest shareholder, and it has indicated they intend to accept the new offer.
An independent expert valued the shares at $1.07 to $1.16.
The offer can be accepted once the existing revised bid lapses on 14 December.
Those shareholders who have already accepted the 98 cents per share offer will be free to accept the new offer, the company said.
Shares in LCL rose 8.59% to $1.075 as at 11.47am AEST.
