Caltex yet to hear back from Canadian bidder and hints at Julian Segal successor
Caltex hints its fuels and infrastructure head Louise Warner is a potential successor to outgoing boss Julian Segal.
Caltex has confirmed it has yet to receive any response from Canada’s Couche-Tard after rejecting its $8.6bn takeover offer and name-checked its fuels and infrastructure head Louise Warner as a potential successor to outgoing boss Julian Segal.
The fuels retail operator also announced plans to raise $500m through the sale of hybrid securities and will reap $136m after selling 25 petrol sites as it moves on with its own strategy to unlock value in its assets.
The Australian convenience retailer rebuffed Couche-Tard’s $34.50 a share offer on Tuesday, but offered limited due diligence and said it was still waiting for any reaction from the Canadian giant’s chief executive Brian Hannasch as to how it might respond.
READ MORE: Shareholders back Caltex call to reject Couche-Tard offer | Weighing value on Couche-Tard’s Caltex bid
“On Tuesday, I spoke to Brian Hannasch at 5am and let him know that after all the due consideration we would be declining their offer,” Caltex’s chairman Steven Gregg told the company’s annual investor day on Thursday. “I also made it very clear to Brian that they are a credible firm and we have respect for their firm and that we would be engaging with them to have a chat about sitting down with them and going through some non-public information, We’re yet to hear back but I assume we will hear back soon.”
The company also hinted it was nearing a decision on Mr Segal’s successor after the long-serving chief signalled in August his plans to step down.
“We have a short-list of some extremely qualified and credible external candidates and we have one extremely qualified and credible internal candidate in Louise and I will be in a position to make a decision on that in the near future,” Mr Gregg said. “Of course we have to do this in the context of what we have on the table at the moment with the Couche-Tard proposal but I will be dealing with that as soon as I can.”
Caltex also provided an update on its own capital initiatives with plans to issue hybrid securities of $300m to $500m as part of its ongoing capital management strategy.
It expects a proposed sharemarket float of 250 retail sites would have an implied valuation of between $1.455bn and $2bn on a 100 per cent ownership basis based on a cap rate of 5 per cent to 5.5 per cent and starting rent of $80m to $100m a year.
The Sydney-based company would gain between $713m and $980m if a full 49 per cent stake is sold via the IPO as planned. It’s also agreed to divest a first tranche of 25 retail sites for $136m as part of its ongoing retail network review.
Caltex expects net profit after tax of $320m to $360m for 2019 on its preferred replacement cost of sales operating profit basis measure. Earnings before interest and tax rae forecast between $580m to $620m on the same RCOP basis.