Navigation for News Categories
Stock image. MHM Automation has received a takeover offer from US-based Bettcher Industries.
Photo: 123RF
Storage, transport, and logistics equipment maker MHM Automation has received a takeover offer from United States-based Bettcher Industries, at a significant premium to the average share price.
The offer by way of a scheme of arrangement was for food processing business Bettcher to buy all of MHM’s shares for $1.70 a share.
The offer price was an 86.8 percent premium to MHM’s closing price on 2 November, or a premium of 84.2 percent to MHM’s one-month volume weighted average price, 85.7 percent premium to the six-month average, and 92.1 percent on a 12-month basis.
Chair Trevor Burt said non-conflicted directors were unanimously recommending shareholders vote in favour of the scheme, which was subject to an independent valuation, shareholder and other regulatory approval, including the court.
“At MHM, we have been committed to executing a growth strategy that leverages our innovative technologies on a global scale and with Bettcher we have found an aligned partner to deliver this,” Burt said.
“The [board’s independent] committee believes this opportunity with Bettcher is both strategically aligned for the company and provides great opportunities for our employees.”
MHM shareholders will receive further information next month, with a special meeting to approve the deal early next year, with settlement expected in the first quarter of 2024.
Burt said Bettcher was looking to further expand MHM’s Christchurch operations, which employed about 350 people.
Bettcher chief executive Massimo Bizzi said New Zealand was at the forefront of food technology.
“We look forward to supporting MHM’s continued growth from its Christchurch base,” Bizzi said.
Get the RNZ app
for ad-free news and current affairs
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/business/501604/mhm-automation-receives-premium-takeover-offer-from-bettcher-industries
