Prime Mover Magazine


Caltex entertains revised takeover bid from Canadian retail giant

Caltex Australia Limited has received a revised, conditional nonbinding and indicative proposal from Alimentation Couche-Tard Inc to acquire all of the shares in Caltex the company confirmed in a recent statement.

The revised bid comes by way of a scheme of arrangement at an indicative cash price of $32.25 cash per share, an increase of 75 cents per share from the proposal made late last year.

The Revised Proposal according to details shared by Caltex permits it to pay a special dividend to shareholders.

It comes following Caltex's approval to share selected non-public information by Caltex to Couche-Tard whose original bid of it rejected an initial overture of what was valued at around $8.6 billion.

"The Revised Proposal is subject to a number of conditions, including completing due diligence," said Caltex in a statement.

These include agreeing to the terms of a scheme implementation agreement, no material asset acquisitions or divestments, capital raisings, capital management initiatives or similar transactions.

The acquisition was also contingent upon "unanimous recommendation by the Caltex Board" and approval of Couche-Tard.

Completion of any agreed transaction will be subject to Foreign Investment Review Board approval.

According to Caltex Couche-Tard had indicated that its revised price is its best and final price in the absence of a competing proposal.

But it is understood that EG Group, a British owned retailer of petroleum and fast food across Europe, was in talks with Macquarie Group to make a bid for Caltex.

The Caltex Board is currently considering the Revised Proposal, including obtaining advice from its financial and legal advisers the company said.

"The Revised Proposal is subject to various conditions and there is no certainty that it will result in a change of control transaction," it concluded its statement.

Couche Tard currently operates over 16,000 fuel outlets across North America, Europe and Asia.

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