The directors of New Zealand telco, TeamTalk Ltd, have unanimously recommended that its shareholders reject Spark New Zealand’s hostile takeover bid of 80 NZ cents per share.
TeamTalk engaged an independent adviser, Grant Samuel & Associates, to prepare a report on the merits of this takeover.
Grant Samuel said Spark’s offer of 80 NZ cents per share is below TeamTalk’s underlying value, which is between NZ$1.52 and NZ$2.11 per share, and hence there is no compelling reason to accept the offer.
TeamTalk says Spark’s offer is “woefully inadequate” – and doesn’t reflect the value of TeamTalk’s new strategy, strong leadership and forecast growth.
Yesterday, Spark shares closed 0.65% higher at AU$3.11.