Brisbane-based testing and chemicals group Campbell Brothers has blinked and has lifted its offer for Ammtec of Perth, and lowered its sights as to whether it wants total control.
It has boosted the terms of its cash offer and its all-share alternative to try and win over Ammtec shareholders after the company’s board maintained its strong opposition to the offer.
Campbell Brothers, through its wholly owned subsidiary Australian Laboratory Services Ltd, has increased its cash offer to buy all shares in Ammtec at $3.80 each.
This is up from the original bid of $3.35 issued on May 18.
The alternative share offer is four Campbell Brothers shares for every 33 Ammtec shares, which implies a value of $3.73 per Ammtec share, Campbell Brothers said in yesterday’s statement.
That’s up from the May offer of 2 Campbell Brothers shares for every 17 Ammtec shares held.
Campbell Brothers and ALS also announced that ALS will pay a broker handling fee in accordance with the terms of its bidder’s statement to any broker who can demonstrate that they have initiated acceptances of offers from their clients from the date of this announcement.
Campbell said the new cash offer of $3.80 per Ammtec share represents "a significant 51% premium" (33% in May) to Ammtec’s closing price of $2.51 on 18 May 2010, the last trading day prior to announcement of the first offer.
The offer is open for acceptance until 5.00 pm Perth time on September 22, 2010, unless otherwise extended.
If ALS and its associates receive sufficient acceptances to increase its interest in Ammtec to at least 30% by 15 September 2010, then Campbell Brothers and ALS say they will:
Declare the offer unconditional;
Accelerate payment of the consideration payable under the cash offer to 5 business days of receipt of acceptance; and
For Ammtec shareholders that have already accepted the cash offer, payment will be dispatched within 5 business days of Campbell Brothers and ALS declaring the offer unconditional.
Campbell shares rose 42c, or 1.3%, to $31.30.
AEC shares jumped 7.7% to $3.77 (or 27c) to take account of the higher offer price and rise in the Campbell shares.
And building products maker James Hardie Industries will find out tomorrow if it has won a Federal Court appeal against an amended tax office assessment that could cost it more than $US330.4 million ($366.62 million).
Shares in James Hardie will enter a trading halt from 2 pm on September 1, pending the Federal Court judgment at 2.15 pm.
RCI Pty Ltd, a wholly owned James Hardie subsidiary, appealed the amended notice of assessment in the Federal Court last September.
The assessment relates to RCI’s 1999 income tax and was issued by the Australian Taxation Office in 2006.
James Hardie says if it is successful, it expects to recover around $274.8 million of payments made under the amended assessment.
Bit it said if the Federal Court finds against RCI, it is likely a charge of around $US330.4 million ($366.62 million) will need to be recorded, while the appeal process continues.
Hardie shares rose 9c to $5.40 yesterday
