The Federal Court has approved Japanese paint giant Nippon’s takeover bid for DuluxGroup while the Brookfield offer for aged home operator Aveo struggles towards fruition.
More than 97% of DuluxGroup shareholders last month voted in favour of the company’s $3.8 billion sale to Nippon Paint Holdings after it was unanimously backed by the board.
The scheme of arrangement was approved by the Federal Court during a hearing. Shareholders will receive $9.37 for each DuluxGroup share on August 21.
DuluxGroup shares on the ASX were suspended at the close of trading yesterday.
The deal will not be expected to alter the paint, coatings and adhesive company’s operations or to affect a name change in Australia and New Zealand.
Meanwhile, Aveo’s board continues to release tidbits of information about the potential sale to a Canadian investor, Brookfield Property. Yesterday it told the market the cash price offer is $2.195 for each stapled security minus any distributions made after they enter a definitive agreement.
This includes an already announced 4.5 cents, making the offer $2.155, or $1.25 billion
Aveo Group is currently trading 2.7 percent lower at $1.95, down 3.9% from yesterday’s close of $2.03.
“However, the negotiations are incomplete and entry into definitive agreements would be subject to Aveo Board approval, “ Aveo’s board again cautioned yesterday.
“There is no certainty that definitive agreements will be entered into at the indicative price (or at all), that the indicative proposal will result in an acceptable offer for Aveo security holders or that a transaction will be implemented”, the board said in a repeat of previous warnings.
