CPB to acquire PearlStreet for $87m
September 30, 2009
Campbell Brothers Limited (CPB) said it intends to launch a takeover offer for PearlStreet Limited (PST) of 56c per share, a 31.8% premium to the closing price Wednesday. The proposed offer values PearlStreet at $86.7 million.
Campbell Brothers also noted the price offered for PearlStreet, which provides asset management and engineering services to the energy sector, was a 79% premium to 5-day average price to the end of last week.
In outlining the offer Campbell Brothers said PearlStreet would be entitled to retain their final 1c per share dividend already declared by the board, however further dividends declared could reduce their offer by that amount.
Campbell Brothers’ managing director, Greg Kilmister, said it expanded it presence across more sectors.
”It represents a significant step towards our goal of diversifying our analytical services business, both geographically and in terms of capabilities,” Mr Kilmister said.
The company said conditions were attached to the offer, including a board recommendation and a minimum 90% acceptance.
At the close Wednesday, Campbell Brothers shares were down 43c to $29.59, while PearlStreet shares were off by 4c to $42.5c.
Campbell Brothers also noted the price offered for PearlStreet, which provides asset management and engineering services to the energy sector, was a 79% premium to 5-day average price to the end of last week.
In outlining the offer Campbell Brothers said PearlStreet would be entitled to retain their final 1c per share dividend already declared by the board, however further dividends declared could reduce their offer by that amount.
Campbell Brothers’ managing director, Greg Kilmister, said it expanded it presence across more sectors.
”It represents a significant step towards our goal of diversifying our analytical services business, both geographically and in terms of capabilities,” Mr Kilmister said.
The company said conditions were attached to the offer, including a board recommendation and a minimum 90% acceptance.
At the close Wednesday, Campbell Brothers shares were down 43c to $29.59, while PearlStreet shares were off by 4c to $42.5c.