Kitchen and cleaning products distributor GUD Holdings Ltd
(ASX:GUD) has announced it will go ahead with an $84 million off-market takeover offer for industrial storage equipment maker Dexion Ltd
(ASX:DEX).
The company has launched a capital raising to raise $40 million through an institutional placement to fund the acquisition, as well as a retail share purchase plan.
Under the offer, GUD is offering Dexion shareholders 80 cents for each Dexion share, representing a 100% premium to its closing share price on May 20 of 40 cents.
Dexion directors have unanimously recommended that shareholders accept the offer.
GUD Managing Director Ian Campbell says the acquisition will provide a significant growth platform for the company, adding an international dimension and providing access to growth sectors in distribution and third party logistics.
GUD was granted exclusivity to conduct due diligence on Dexion until June 18 after signing a merger implementation agreement for the takeover bid in May.
GUD shares have been placed in a trading halt until the placement has been completed.
GUD Holdings booked a profit of $34.8 million for the 2009 financial year.
