Green Light For Buy-Out Offer For Brumby's
9 March 2007
ANNOUNCEMENT
Green Light For Management Buy-Out Offer For Brumby’s After Termination Of Rfg Mia
The management buy-out offer for Brumby’s should be
put to shareholders as soon as possible, the syndicate of
Brumby’s CEO and managing director Michael Sherlock,
director Marcus Barlow and general manager and company
secretary Steve Brown (BBS) said today.
This follows today’s announced termination of the merger implementation agreement (MIA) between the Retail Food Group (RFG) and Brumby’s after the non-conflicted members of the Board of Brumby’s recommended BBS’s offer as higher and superior to RFG’s proposal.
Mr Sherlock said he was always confident that the management buy-out offer would succeed.
“Our offer, which was 11.5 cents higher than RFG’s, was in the best interests of the shareholders,” Mr Sherlock said.
“This ensures that the successful management team that has guided Brumby’s outstanding performance in recent years will remain in place.
“BBS will now work with the Brumby’s board to have its offer for Brumby’s put to shareholders as soon as possible.”
Brumby’s has already signed an Implementation Agreement with BBS which now comes into force with the RFG MIA being terminated.
BBS’s offer is to acquire 78.98 per cent of the company held in non-associated shareholder’s hands for $2.80 cash for each BBH share and a fully-franked dividend of 10.883 cents per share.
ENDS