Qube Holdings Limited (ASX: QUB) has announced its intention to launch a takeover offer for all the shares of Chalmers Limited (ASX: CHR). Here’s what you need to know.
About Qube And Chalmers
Qube is a diversified logistics and infrastructure company founded in 2010 following the acquisition of Kaplan Equity by KFM Diversified Infrastructure and Logistics Fund, which rebranded as Qube Logistics. Qube is comprised of five business units including Ports, Bulk, Logistics, Infrastructure and Property, and Strategic Assets.
Chalmers provides a range of supply chain management functions including wharf transport, container repairs, warehousing and distribution, cross-docking, and stock handling.
Takeover Offer
Qube has announced an off-market takeover offer through its wholly-owned subsidiary Qube Logistics Pty Ltd in which Chalmers shareholders will receive either 2.31 Qube shares or $6.50 cash for each Chalmers share.
This offer values Chalmers at approximately $60 million and will be funded through Qube’s existing debt facilities.
The Chalmers Board intends to unanimously recommend that shareholders accept the offer.
Chalmers’ Chairman Graham Mulligan said, “The offer represents attractive value for Chalmers shareholders”.
The offer price represents a 49% premium to the closing price of Chalmers shares on 27th June 2019.
Qube has also secured support from Alljet Investments Pty Ltd, a major shareholder in Chalmers, in the form of a pre-bid acceptance agreement over a 19.9% Chalmers shareholding.
The offer will be open for acceptance from 8th July 2019.
Will It Go Ahead?
It seems likely that this offer will go ahead if no superior proposal is put forward. Qube has secured the support of the Chalmers Board and a major shareholder, so the hurdles now are mostly regulatory.
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Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
