Dorchester Pacific has officially launched its takeover bid for Turners Group – lodging its takeover offer late yesterday.
In a statement to the NZX, the company says it has also secured funding to complete the deal. It is making the takeover through a newly-formed subsidiary Dorchester Turners Limited.
Dorchester’s current intention is to make the offer on 18 September 2014, with the offer to close on 17 October 2014, assuming shareholder approval in mid-September.
Turners board is now set to seek an independent review of the deal before making a recommendation to shareholders.
Last Thursday, Dorchester registered a trust deed and simplified disclosure prospectus, for the secured convertible bonds to be offered to Turners Group NZ Limited shareholders under its intended takeover offer.
The takeover has been long rumoured, but came closer to reality after Turners chairman and major shareholder Michael Dossor agreed to commit the 20.8% of Turners’ shares that he controls.
“There is a natural alignment and synergy between Dorchester and Turners Auctions, which we talked about at the time of our investment in Turners,” Dorchester chief executive Paul Byrnes said at the announcement.
The next question to be answered is what Turners is worth? When originally announced it was expected an offer of $3 a share would be made – a 9% premium at the time valuing the deal at $82 million.
But since then, and with a solid result issued last month, Turner’s share price has risen to $3.11 – valuing it at over $85 million.
