The Australian share market or S&P/ASX 200 (INDEXASX: XJO)(ASX: XJO) index is expected to open flat as a pancake Tuesday morning, according to data from the Sydney Futures Exchange.
Here’s what you need to know:
SFE ASX 200 futures: flat
Australian Dollar ($A) (AUDUSD): 76.70 US cents
Dow Jones (DJI): up 0.2%
Oil (WTI): $US62.34 per barrel
Gold: $US1,334 per ounce
Overnight, London-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) finished up 1.1% and down 0.3%, respectively, according to Yahoo! Finance.
Australian Investing News
Making news in Australia and on the ASX, vacuum retailer Godfreys Group Ltd (ASX: GFY) is the subject of a takeover offer from Arcade Finance Pty Ltd, Godfreys’ largest shareholder with a 28% holding. The takeover offer is priced at $0.32, which compares to Godfreys recent share price of $0.21.
“I co-founded Godfreys with Godfrey Cohen in the 1930s,” John Johnson wrote in a letter to Godfreys shareholders. “Since then I have been a strong supporter of Godfreys. I am a director of Arcade, which is the largest holder of Godfreys shares.”
Godfreys shares have come under intense selling pressure since the company listed on the ASX in 2014. After reaching a high of $3.55 in 2015, Godfreys’ shares have continued to decline to its current price of $0.21.
Johnson says the Arcade offer is promising given the decline. “This Offer is particularly attractive in the context of Godfreys’ continued long-term share price decline, 1H18 Results, level of debt and where, on February, 2018 the Godfreys Board announced that the interim dividend is not going to be paid.”
Arcade is an associate of the company, 1918 Finance, which provided $30 million of debt to Godfreys. “Arcade believes that the restructuring required to restore Godfreys’ value would be best carried out in an un-listed private company environment.”
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