- Aluminium company Capral (CAA) has been approached with an indicative proposal from Allegro to buy 100 per cent of company shares at $7 apiece
- Capral broke the news to investors today and encouraged them to vote in favour of the proposed transaction should the buy go ahead
- According to the company, the offer represents a 16.5 per cent premium to the one-day volume-weighted average price (VWAP) of $6.01 and a 12.9 per cent premium to the one-month VWAP
- Capral noted the proposal is still non-binding at this stage, pending “satisfactory completion” of due diligence by Allegro and its ability to secure debt finance to fund a portion of the indicative offer price
- Capral shares have jumped 18.9 per cent on the buyout news to trade at $7.30
Aluminium company Capral (CAA) has been approached with an indicative proposal from Allegro to buy 100 per cent of company shares at $7 apiece.
Capral today confirmed that it had received the offer from the investment company and, in the same breath, recommended its shareholders vote in favour of the proposed transaction.
According to Capral, which is trading around the $7.30 mark this afternoon, the offer represents a 16.5 per cent premium to the one-day volume-weighted average price (VWAP) of $6.01 and a 12.9 per cent premium to the one-month VWAP.
Capral affirmed the proposal is non-binding at this stage and remains subject to
“satisfactory completion” of due diligence by Allegro and its ability to secure debt finance to fund a portion of the indicative offer price.
“After consideration by the board and its advisers, the board has concluded that it is in the best interests of Capral shareholders to allow Allegro to proceed with its due diligence investigations and for the board to engage further with Allegro to progress the proposal,” today’s statement from Capral read.
The due diligence process is expected to take Allegro six weeks to complete, commencing today.
Capral said it will continue to update investors as appropriate.
Capral shares have jumped 18.9 per cent on the buyout news to trade at $7.30 at 2:18 pm AEST.