Corporate Express Australia Ltd
(ASX:CXP) has agreed to a buy-out by its majority shareholder in a deal that values the office products’ supplier at $1 billion.
Staples, the world’s largest office products company, has offered $5.60 a share for the remaining 41.4% stake in Corporate Express it doesn’t already own.
The company’s board unanimously recommended the offer in absence of a superior bid.
Staples acquired a 58.6% interest in the company after buying out its Dutch major shareholder in 2008.
Staples CEO Ron Sargent says the offer provides the minority shareholders of Corporate Express with an opportunity to realise a significant premium to the current share price.
Under the deal, Corporate Express shareholders will still receive a 12.5 cent dividend, giving a total value of $5.725 a share.
But the offer price is likely to be reduced by a proposed 78 cent per share special dividend, which is subject to an Australian Taxation Office ruling.
For the 12 months to January 30, 2010, Corporate Express posted a profit of $57.15 million.
