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- Australia’s largest building construction group CIMIC (CIM) has made a $15.6 million cash offer of 24 cents per share to fully acquire Devine (DVN)
- The latest cash bid is twice the closing share price of Devine on May 24, which was 12 cents per share
- This is CIMIC’s second go at a takeover bid, having made an offer in late 2015 at 75 cents a share.
- CIMIC’s management of the real estate company has been met with scrutiny from minority shareholders, who moved to try and get ASIC to look into allegations that CIMIC was forcing losses to drop Devine’s share price
- Devine’s shares have rocketed up 108 per cent to 25 cents while CIMIC has enjoyed a more modest boost of 0.52 per cent, with their shares rising to $21.33
Australia’s largest building construction group CIMIC (CIM) has made a $15.6 million cash offer of 24 cents per share to fully acquire Devine (DVN).
Through its CIMIC Residential Investments (CRI) arm, it plans to buy 40.89 per cent of shares it does not own, equating to a total outlay of nearly $15.6 million.
The latest cash bid of 24 cents per share is twice the closing share price of Devine on May 24, which was 12 cents per share.
This is CIMIC’s second go at a takeover bid, having made an offer in late 2015 at 75 cents a share.
It managed to purchase an extra 9.11 per cent of shares to where it sits now at 59.11 per cent, but further share acquisitions were rejected by minority shareholders.
CIMIC’s management of the real estate company has been met with scrutiny from minority shareholders, who moved to try and get ASIC to look into allegations that CIMIC was forcing losses to drop Devine’s share price.
Devine’s shares have been in a free fall since hitting record highs of $5.03 in November of 2007, falling to 95 cents at the start of 2015, to its current 12 cents share price as of the end of May 24.
Devine said its directors will evaluate the offer in due course and will engage an independent expert to evaluate if the offer is fair and reasonable.
At this stage, the Devine directors recommend that shareholders take no action in relation to the offer.
CIMIC has received Foreign Investment Review Board approval for the offer and will be funded using available funds or existing debt facilities.
The Australian Securities Exchange has not yet received a bidder’s response from the company.
Devine’s shares have rocketed up 108 per cent to 25 cents while CIMIC has enjoyed a more modest boost of 0.52 per cent, with their shares rising to $21.33 at 10:37 am AEST.
