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GUD announces takeover offer for Breville

10 October 2009 1,239 views No Comment

PRODUCT marketing business GUD Holdings has made a takeover offer for Breville Group, to create what it says would be a major Australasian small appliances business.
GUD says it’s offering one share for every four Breville shares, valuing Breville at $2.20 per share, or at $322 million on an enterprise basis.

GUD says it is an “attractive premium” of 206 per cent to the Breville closing price of 72 cents on May 28, 2009, the day before GUD announced it had acquired 19.4 per cent of Breville.

It is a 47 per cent premium on Breville’s closing price of $1.50 on October 8.

GUD chairman said in a statement that the board believed the offer represented “an extremely attractive opportunity” for Breville shareholders to gain a premium on their shares, “while retaining an investment in a larger company with a stronger shareholder return and dividend track record”.

GUD said the offer was supported by key shareholders holding an aggregate of 28 per cent of Breville shares on issue.

“Combined with GUD’s 19.4 per cent interest, this represents 47.4 per cent of Breville shares on issue.

“The offer is subject to GUD obtaining a relevant interest in at least 50.1 per cent of Breville shares.”

GUD said it believed the businesses were complementary and would create a company with combined sales of an estimated $900 million.

“If we were successful in combining the highly complementary businesses of Sunbeam and Breville, the merged group will be a leading small domestic appliance business in Australasia and will provide a strong platform for expansion in international markets, particularly North America,” GUD managing director said.

GUD shares were in a trading halt and last traded at $8.62.

AT 11.33am (AEDT) Breville shares jumped 4.5 cents, or 3 per cent, to $1.545.

source from:news.com.au

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