Independent expert Deloitte said the takeover bid is “not fair but reasonable”.
Deloitte valued Best & Less shares at between $2.03 to $2.43, but also pointed to the unusual context.
Stephen Heath, the head of an independent board committee, won’t be accepting the offer for his shares.
Private equity group Allegro, with 32.4 per cent, will accept in the absence of a higher bid.
Brett Blundy and Ray Itaoui’s takeover bid for Best & Less is “not fair” to other shareholders “but reasonable”, an independent expert appointed by the company’s board has concluded.
Deloitte estimated the value of Best & Less shares was between $2.03 and $2.43, but recognised the practicalities of the unusual situation where the two retail veterans will likely end up controlling the company because major shareholders, such as private equity group Allegro, have already signalled they will sell into the $1.89 per share offer.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
