The majority of UGL Ltd’s (UGL) directors have recommended the engineering group’s shareholders accept Spanish-controlled construction giant CIMIC’s $524 million takeover bid.
UGL says the $3.15 a share unsolicited takeover offer represents an attractive premium to historical trading prices following an independent expert’s report by Grant Samuel to assess the merits of the offer.
UGL said Grant Samuel has assessed that the value of UGL on a 100% controlling interest basis ranges from $3.11 to $3.94 per UGL Share "As the Offer price of $3.15 falls within the Independent Expert’s range the Independent Expert has concluded that the Offer is fair and reasonable, in the absence of a superior offer,” UGL said in their recommendation statement issued before yesterday’s AGM in Sydney.
But one UGL non-executive director Robert Kaye had recommended that shareholders reject the offer as he believed the bid may not reflect fully the underlying value of the company.
UGL shares dipped 0.9% to $3.15 yesterday as hedge funds realised the bid will probably go through, absent a surprise last minute offer.
