Brisbane-based residential property developer Devine and its erstwhile suitor, CIMIC (the old Leighton Holdings) have nudged each other towards agreement over the increased takeover offer from CIMIC.
CIMIC has increased its offer to 81 cents a share from the offer of 74 cents a share it made last month. It is bidding for the 50.63% of Devine it doesn’t already own.
The offer is higher than Devine’s closing share price yesterday of 75.5 cents.
Devine has been in negotiations with CIMIC for some weeks and in a statement on the company’s website last night and released to the ASX, Devine’s independent directors unanimously recommended that shareholders accept the higher bid in the absence of a superior proposal.
The company will release a full Target statement later today which will also include an independent report by KPMG that will say the the offer is not fair but reasonable to Devine shareholders.
The 81 cents a share higher offer is sharply priced – it is the highest the shares have been since April this year, so the premium for control is pretty skinny. But owning 49% means CIMIC holds the whiphand. Devine shares peaked at 95 cents each in October of last year.
