Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Dorchester Pacific to bid $3/share for Turners Auctions

Dorchester Pacific to bid $3/share for Turners Auctions, wins support from chairman

By Jonathan Underhill

July 28 (BusinessDesk) - Dorchester Pacific plans to offer $3 a share in cash, shares and notes for Turners Auctions, valuing the auction company at $82 million, after winning support from chairman and major shareholder Michael Dossor.

The offer would amount to a 9.1 percent premium on the most recent trading price of Turners of $2.75 and Dorchester said it would also require Turners to pay a fully-imputed special dividend of 15 cents a share once it has acceptances that would give it more than 50 percent of the company. Dorchester currently owns 19.85 percent of Turners while the target company's chairman owns 20.8 percent through Bartel Holdings, for a combined 40.65 percent stake.

Dorchester said it will offer either $3 a share cash, two-year notes that pay interest of 9 percent and convert to Dorchester shares. ordinary shares of Dorchester or any combination. Bartel, which has entered a lock-up agreement with Dorchester, has agreed to accept 60 percent ordinary shares and 40 percent convertible notes, the finance company said.

Dorchester said the takeover was conditional only on achieving at least the 50.1 percent control required under the Takeovers Code.

"There is a natural alignment and synergy between Dorchester and Turners Auctions, which we talked about at the time of our investment in Turners," Dorchester chief executive Paul Byrnes said. "Seventy percent of our finance lending is for motor vehicles and our insurance business has a focus on motor vehicle related insurance products."

Turners stock was put in a trading halt. Dorchester rose 4.6 percent to 23 cents and is little changed this year.

Dorchester expects to raise between $25 million and $27.5 million by selling shares at 25 cents a piece to Turners stockholders including Bartel and via a placement, it said. It also expects to issue about $15 million of convertible notes to Bartel and other parties, it said. Final details would depend on what combination of cash and securities that Turners' shareholders accepted.

Dorchester plans to make a formal takeover offer in August, with resolutions relating to the proposal put to the company's annual meeting.

A successful takeover may lift Dorchester's 2016 pretax earnings to between $20 million to $25 million, from a forecast $10 million to $11 million forecast for the current year from existing businesses, it said.

Dorchester chairman Grant Baker said after the transaction, its balance sheet "will still remain relatively conservative," giving the company room to pursue further acquisitions.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news