An official takeover offer for Turners from financier Dorchester Pacific is expected any day now – with Dorchester lodging documents with the Companies Office last week.
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.
Dorchester has also re-financed its bank facilities, and a new acquisition facility, for the Turners acquisition, with Bank of New Zealand.
It has established a new company – Dorcester Turners Limited – and transferred its shares to that entity.
In its statement on Thursday, it said it expected to deliver a formal takeover notice ‘in the next few days’ – and to seek Dorchester shareholder approval for the transactions in mid-September.
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.
