A quick turn of events in the going nowhere takeover battle between Melbourne-based multi millionaire, Raphael Geminder and his target, Melbourne-based McPhersons.
Geminder is the founder of the Pact Group packaging business and by the wording of a statement yesterday he seems to have made a final play for McPherson’s without lifting the original $1.34 a share offer.
He declared in a statement to the ASX on Tuesday morning that the $1.34 a share offer would be final in absence of a competing offer.
Once a bid is deemed to be final by the bidder, it can’t be increased in the terms of the current offer. The bid can be dropped and the bidder has to wait six months to try again at the same or a different price.
But then McPherson’s countered with a request for a halt for the shares until Thursday to allow it to complete and update the market on its trading outlook.
In a statement to the ASX on Tuesday afternoon, hours after the statement from Geminder’s investment company, Gallin, McPerhson’s asked for the halt, saying “(the) trading halt is necessary for the Company to make an announcement to the market providing up to date guidance with respect to its trading outlook.
“It requests the trading halt to remain in place until the commencement of normal trading on Thursday, 29 April 2021, unless, before that time, it makes the Announcement or requests that the trading halt be lifted;
Geminder first bid for McPherson’s last month via his investment company Gallin, which proposed an on-market buyout of the business to gain control of the struggling business.
On Tuesday, Gallin said the $172 million offer would be its last and urged shareholders to accept the deal, citing McPherson’s long history of underperformance and lack of transparency for shareholders.
“Despite numerous requests, McPherson’s has refused to provide shareholders with any clarity around current or future trading performance, which raises a number of serious red flags regarding the outlook,” Gallin director Nick Perkins said.
“Gallin’s $1.34 cash per share, on the other hand, is unconditional and delivers shareholders immediate and certain value for their McPherson’s shares. It represents a 9.8 per cent premium to the last close prior to our offer and gives a real opportunity for shareholders to realise value in an uncertain environment”.
Gallin’s offer closes on May 10.
It has been an offer largely ignored. Gallin already helds 4.95% of McPherson’s, which owns brands such as Dr LeWinn’s, Manicare, Multix and Lady Jayne.
And despite repeated entreaties to accept the offer, shareholders and investors generally have not listened.
McPherson’s shares have traded above the offer price at more than $1.36 since Gallin first approached the company in late March.
Shares last traded at $1.415 before the halt was imposed.
Now for the update from McPherson’s.
