22nd Jun 2021 18:48
(Alliance News) - Senior PLC on Tuesday rejected a final sweetened buyout offer from US-based Lone Star Global Acquisitions Ltd, saying the deal made a day earlier "still fundamentally" undervalues the company.
With 419.4 million shares in issue, the fifth offer of 200 pence from the private equity firm values Senior at GBP838.8 million. The stock closed down 9.9% at 149.30p on Tuesday.
The latest bid presents a 69% premium to Senior's closing price on May 27 of 118.3p, the last closing price prior to the start of the offer period, and is 8.1% above the fourth proposal of 185p which was put to the Senior board last Monday.
"We view this final conditional proposal as highly opportunistic given the timing and the relative share price weakness, coming at a point where our end-markets are showing signs of recovery. Senior has been resilient through the pandemic and is well-positioned to emerge strongly as the recovery continues. The proposal still fundamentally undervalues Senior. The board believes we have a clear strategy that will maximise value for shareholders over the medium-term and accordingly, the board is not able to recommend a sale of the business at 200p per share," said Chair Ian King.
By Arvind Bhunjun; [email protected]
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