Heated takeover race shoots up McPherson's (ASX:MCP) shares

Company News

by Michael Luu

The race for ownership of ASX-listed health, wellness and beauty products distributor McPherson’s (ASX:MCP) has intensified, as a new bid by Arrotex has toppled unlisted investment firm Kin Group’s 172 million takeover offer.

McPherson’s confirmed in a statement this morning that Australia’s largest locally-owned pharmaceutical company submitted a non-binding indicative proposal of $1.60 for every McPherson’s share.

The submission has enabled Arrotex to access McPherson’s internal information for due diligence processing.

The last-minute offer represents a 26-cent premium on rich lister Raphael Geminder’s Kin Group’s offer of $1.34. Kin Group’s subsidiary Gallin made it clear to investors that was the final offer, should there be no challenge from another competing bidder.

The superior offer effectively means Gallin must up its game, if Raphael Geminder chooses to continue the pursuit of the skincare retailer.

McPherson’s management has not yet expressed an opinion on the takeover proposal, as the company’s board considers their stance on the impact such a deal may have on its stakeholders.

The heated race has fired shares in McPherson's (ASX:MCP) up 8.6 per cent to $1.54