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.