St Laurence Equities Launches Stand In Market
St Laurence Equities Launches Stand In Market For 19.9% Of Rural Equities
St Laurence Equities Limited today announced a stand in the market seeking to acquire up to 19.9% of shares in Rural Equities Limited.
The price to be paid by St Laurence is $1.50 cash per share. St Laurence intends to acquire shares on a first in, first accepted basis.
This stand in the market is separate from, and in addition to, the formal takeover offer for up to 100% of shares in Rural Equities, which St Laurence announced last month. The offer price of the formal takeover offer is also $1.50 cash per share, which values the company at $22.2 million.
“Rural Equities shareholders considering accepting the formal takeover offer by St Laurence can instead choose to participate in our market stand,” said St Laurence Managing Director Kevin Podmore.
“The market stand offers Rural Equities shareholders certainty. They can sell all their shares at a fair and reasonable price immediately, with no scaling.
Rural Equities is currently subject to a partial takeover offer from H&G Limited, a company owned by Sir Selwyn Cushing and David Cushing. H&G have offered $1.25 per share to take their and their associates combined holding in the company to 50.1%.
“We also note that the Deloitte valuation of Rural Equities was released today. Deloitte’s assess the fair market value of a 50.1% controlling shareholding in Rural Equities to be in the range of $1.21 to $1.46 per share,” said Mr Podmore.
"Our market stand price of $1.50 per share therefore represents a significant premium to both the Deloitte’s valuation, and the competing H&G offer.
Mr Podmore said the St Laurence directors would examine the Deloitte’s valuation report and make a full statement in the near future.
“Meanwhile, any shareholder wishing to sell
their Rural Equities shares should immediately contact their
sharebroker or financial advisor. Alternatively they may
obtain details of the offer by contacting First NZ Capital,”