Engenco tells shareholders to ‘sit on takeover offer’ from Elphinstone

Transport solutions provider Engenco Ltd (ASX:EGN) has told its shareholders to “take no action” in response to a proposed off-market takeover by Elph Investments, which itself is part of mining equipment manufacturer Elphinstone Group.

The latter already holds a 68.53% stake in Engenco and is offering 30.5 cents for each Engenco share; a premium of 45.2% to the price at March 6’s end of trade.

However, after the offer was announced, Engenco’s board published its own advice: Saying shareholders should sit tight until further information was offered, with Engenco set to release a Target statement in response.

The company said an ‘Independent Board Committee’ had been established from shareholders independent of Elphinstone. Baker McKenzie was appointed as legal advisor.

A recommendation from independent directors, together with an Independent Expert’s Report, will be included in the Target Statement; shareholders have been advised to await this before taking any steps concerning the offer.

Engenco specialises in providing products and solutions for transportation, with segments including ‘Drivetrain,’ which offers technical services to industries like mining, oil and gas, rail, defense, and marine, and ‘Convair,’ which manufactures bulk pneumatic road tankers and mobile silos for carrying and storing dry bulk materials.

EGN‘s share price was last 29.5 cents – a rise of 40% since market open.

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