Caltex Australia (ASX:CTX) says EG proposal 'undervalues the company'

Company News

by Rachael Jones

The board of Caltex Australia (ASX:CTX) has concluded that the EG Proposal undervalues the Company and does not represent compelling value for Caltex’s shareholders.

However, the Caltex Board considers that it is in the interests of Caltex shareholders to engage further with the UK’s EG.

The Board obtained advice from its financial and legal advisers and has also considered feedback from Caltex shareholders.

They say there is no certainty that the discussions between Caltex and EG will result in EG improving its proposal or in EG making a binding proposal.

Shares in Caltex Australia (ASX:CTX) closed 3.03 per cent lower at $32.70 on Friday.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.