Caltex opens books to bidder Couche-Tard
Caltex says agreements have opened the way for talks to proceed with Canada-based takeover hopeful Couche-Tard.
Caltex has confirmed talks are proceeding with takeover bidder Alimentation Couche-Tard after the required confidentiality and standstill agreements were signed, potentially advancing the Canada-based giant’s proposed $8.6 billion bid.
Couche-Tard has a high-powered team led by chief executive Brian Hannasch for today’s Caltex management presentation, led by chief executive Julian Segal.
Alain Bouchard, the chairman of the convenience store operator, will also be in Sydney for the two days of scheduled meetings.
Caltex agreed to the limited due diligence in an attempt to keep the door open for a takeover bid, hoping for an increase in the $34.50 offer suggested.
Caltex previously said Couche-Tard’s offer undervalued the company “and did not represent compelling value for shareholders”.
“Caltex also previously advised it had offered to provide (Couche-Tard) with selected non-public information to allow (it) to formulate a revised proposal that appropriately reflects the value of Caltex, subject to the execution of an appropriate confidentiality agreement.
“Caltex today announces that it has entered into a confidentiality agreement with (Couche-Tard) to facilitate the provision of selected non-public information. This information will be provided to ATD in the coming days.”
Caltex added: “There is no certainty that the discussions between Caltex and ATD will result in ATD improving its indicative cash price or in ATD making a binding proposal.”
Couche-Tard has played down the chances of a higher bid, but the battle is just starting.
It comes after Caltex last week said it had fielded multiple approaches for all or some of its assets, including one from Britain’s EG Group.
When Chevron sold its controlling stake in Caltex in March 2015 it was at $34.20 a share, or a 10 per cent discount to the prevailing market price of $37.88 a share.
Today’s scenario is remarkably similar, with Caltex closing yesterday ar $35.56 a share.
EG, meanwhile, is in advanced talks with the Australian Competition and Consumer Commission to clear any deal.
ACCC approval is necessary to get FIRB approval.
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