ATD ups Caltex takeover offer by $200m

13 February 2020, Written by Business News Australia

ATD ups Caltex takeover offer by $200m

Canadian convenience store operator Alimentation Couche-Tard Inc (ATD) has increased its offer for Caltex Australia (ASX: CTX) to $8.6 billion, following a confidentiality agreement allowing access to non-public information.

At $35.25 per share, the new conditional and non-binding offer represents a $200 million lift on ATD's previous offer of $34.50 per CTX security, which was rejected by Caltex management who believed it undervalued the company.

When the previous proposal was knocked back in December, Caltex argued it came at a "low point" for earnings and failed to consider the strategic value of assets and opportunities for convenience retail.

In January the company then confirmed it had received approaches from a number of parties including the UK's EG Group, which already owns 540 fuel convenience sites that used to be owned by Woolworths Group (ASX: WOW).

The confidentiality agreement between Caltex and ATD followed suit.

The Canadians appear to like what they've seen, with an offer that is now 10 per cent higher than the original proposal of $32 per share when discussions began.

"ATD has indicated that its revised price is its best and final price in the absence of a competing proposal," Caltex told the ASX this morning.

"The Caltex Board is currently considering the Revised Proposal, including obtaining advice from its financial and legal advisers.

"The Revised Proposal is subject to various conditions and there is no certainty that it will result in a change of control transaction."

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