G.U.D. Holdings Limited (GUD) today announced its intention to make an off-market takeover offer (the Offer) for all the shares it does not already own in Breville Group Limited (BRG).
Under the Offer, GUD is offering all Brevilie shareholders one GUD Share for every 4 Breville Shares. The Offer values Breville at $322 million, or $2.20 per share, and implies a substantial premium of 206% to the Breville closing price of $0.72 on 28 May 2009, being the day prior to the announcement of GUD’s acquisition of a 19.4% shareholding in Breville Group; 51% to the Breville 1 month WVAP up to and including 8 October 2009 of $1.46; and 47% to the Breville closing price on 8 October 2009 of $1 30.
GUD Chairman, Clive Hall, said, “The GUD Board believes this Offer represents an extremely attractive opportunity for Breville shareholders to realise a substantial premium for their shares, while retaining an investment in a larger company with a stronger shareholder return and dividend track record, and participate in the potential operational and financial benefits of combining the businesses.”
GUD Managing Director, Ian Campbell said, “If we are 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.” “I believe there will be significant benefits from leveraging the product development, innovation, sourcing, distribution and marketing expertise in both companies, and believe the combination of the two businesses will unlock significant value for both GUD and Breville shareholders.”
www.gud.com.au
www.brevillegroup.com.au