Civil engineering heavyweight CIMIC has formally submitted a takeover bid for full ownership of residential property developer Devine, targeting the remaining stake in the ASX-listed company.
The $6.6 billion infrastructural developer currently possesses a 59.11 per cent stake in Devine and aims to snap up the the remaining interest in the home builder for a total cash consideration of $15.6 million.
The bidder is offering Devine’s remaining shareholders 24 cents for every ordinary share, which represents a two-fold premium to Devine’s last closing price of 12 cents yesterday.
CIMIC requires a minimum of 90 per cent of ordinary shares to fully acquire Devine. This means they will need a nod from the other major shareholders including 20.6 per cent stake holder Brazil Farming.
This is CIMIC's second attempt at a complete acquisition of Devine, after the first bid of 75 cents per share in 2015. The construction behemoth said it has secured the green light for its takeover move from the Foreign Investment Review Board.
Shares in Devine (ASX:DVN)
are trading 87.5 per cent higher at $0.22