It seems the brief battle for control of RHG, the last bit of the mortgage lender Rams (which was the worst float ever, according to some, listing just weeks before the GFC hit and then seeing the share price collapse), could now be over after a higher offer from Resimac.
At the same time AGL is bidding to buy troubled energy minnow Australian Power and Gas for $100 million.
The battle for control of RHG has been going on now for a couple of months since Resimac launched its original bid, but saw it topped late last week by mortgage lender Pepper.
Shareholders in RHG are now being offered 48c a share from Resimac in addition to the 3c dividend the company plans to pay.
That compares with the 46c-a-share offer from Pepper, which is a "white label" mortgage provider via independent brokers. It’s 5c shy of the total value of the Resimac offer.
RHG is mostly old RAMS mortgages that are still current and generating some income streams.
RHG’s board unanimously recommended the latest bid for the company.
RHG shares closed up 4%, or 2c, at 51.5c yesterday.
Investors seem to be hoping for a counter offer from Pepper.
1Y RHG – Rams Saga Set To End
And energy utility AGL reckons it can grab control of troubled electricity retailer Australian Power and Gas with an agreed takeover bid at 52c a share, of just $100 million.
The bid is an attempt to buy more than 300,000 customers for half the price per customer that some earlier takeovers had been priced at.
The offer is a rich 33% premium to the Aust. Power share price last Friday of 39c.
AGL has snapped up a 19.9% stake in Aust Power, which gives it a strong position in any takeover battle that might emerge.
Aust Power is now a financial powerhouse and has been battling the impact of rising prices on its customers and a large debt which have combined to produce a loss estimated at $5 million for the year to June.
Australian Power shares ended the day at 50.5c, up 11.5c or 29.5%.
AGL shares slipped by 14c or almost 1% to $14.96 in a market up around 7 points.
