Fletcher Building Ltd. has secured almost 93 per cent of target Crane Group's shares and will force compulsory acquisition on the remaining shareholders.
The country's biggest listed company passed the 90 per cent level required to enforce a full takeover two days before the offer closed, after it called
the bid unconditional when it convinced enough shareholders to give it control. It had previously made full control a requirement on the deal, but that had seen acceptances trickle in at a snail's pace, and required several extensions to the offer.
"There were a number of funds that can't accept an offer until it goes unconditional (as part of their mandates), and they were never going to get past 90 per cent on that basis," said David Price, a broker at Forsyth Barr. "By going unconditional (so early on) that allowed the other funds to accept."
The bid won the approval of Crane's directors after it was sweetened to A$3.50 cash and one Fletcher share for every Crane share, plus a 50 Australian cents dividend, valuing the Australian plastic pipe-maker's stock at A$10.07 apiece.
The previous bid, which was rejected by directors, was in a range of A$9.05 to A$9.45 per share - below Crane's independent valuation range of A$9.92 to A$11.56
The shares rose 0.8 per cent to a new three-year high $9.24 today, and have climbed 21 per cent this year.
Chief executive Jonathan Ling encouraged the remaining shareholders to accept the offer, as that will speed up the payment process. Payment for shares acquired compulsorily will take at least a month.
"We are excited about the future prospects of the combined group. We have a great deal of confidence in Crane's divisional management and staff and believe we are well placed to take advantage of the complementary nature of our businesses," Ling said in a statement.
