Macquarie Airports
(ASX:MAP) says an independent expert has found the company’s proposal to internalise management, fair and reasonable.
On July 24 the company announced that is had reached an agreement with Macquarie Capital to internalise the management of Macquarie Airports.
The proposal is to be funded via a one for 11 non renounceable rights issue to eligible security holders at $2.30 per stapled security to raise a maximum of $356 million.
The payment to Macquarie in return for ending the management rights is $345 million.
Independent expert KPMG found the proposal to be fair and reasonable, valuing the management rights in the range of $321 million to $401 million.
Chairman of the independent board committee of Macquarie Airports Management says the independent directors believe that the internalisation proposal is in the best interests of security holders and unanimously recommend that security holders vote in favour of the proposal. Macquarie Airports best net profit in the last five years was $2.07 billion in 2008.
Rural services company Elders Ltd (ASX:ELD) says it plans to reinvigorate and reinvest in its rural services business and dispose of more assets to repay debt.
The company says it intends to return to the Elders name that has been around for 170 years, with Elders saying it expects to see a turnaround in earnings in 2010 thanks to its renewed focus and restructure of the business.
The company reported an underlying loss of $26.9 million after tax for the 12 months to June 30, within guidance.
However the company recorded $388.5 million in non-recurring items after tax widening Elders reported loss to a massive $415.4 million.
Elders has forecast underlying net profit after tax from continuing operations to be $55.7 million in 2010, the recovery in its earning driven by rural services.
Elders raised $400 million last week from institutional investors and currently has a $150 million share purchase plan under way. Elders, formally Futuris Corp, saw its profit more than halve in 2008 from the year before.
Facility services company Spotless Group Ltd (ASX:SPT) has given formal notice to New Zealand’s Taylors Group of its intention to make a cash offer for all the shares in Taylors that it does not already own.
Spotless says it is the largest shareholder in Taylors and owns 66.01 per cent of the shares on issue.
The company is intending to offer Taylors shareholders NZ$2.08 cash per Taylors share, plus they will remain entitled to receive the NZ$0.07 per share fully imputed final dividend declared on August 19.
Spotless says in giving its notice of takeover offer it is seeking a unanimous recommendation from the independent directors of Taylors and that it does not expect to make an offer if such a recommendation is not made.
Taylors independent directors have advised that shareholders take no action until they have studied the report commissioned by Grant Samuel. Spotless Group recorded net profit of $42.7 million in 2009.
