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BWX Ltd (ASX:BWX) receives preliminary takeover offer at a 49% premium

BWX Ltd (ASX: BWX) has received a large takeover offer after going into a trading halt earlier in the day.

The natural beauty business said that it has received an unsolicited preliminary, non-binding, indicative and conditional offer from CEO John Humble, Finance Director Aaron Finlay and Bain Capital Private Equity to acquire all the shares.

The offer is for $6.60 cash per share, or a scrip alternative in a newly incorporated acquisition entity of 75% shares and 25% cash.

BWX said that the Board has established an ‘Independent Board Committee’ (IBC) comprising Chairman Denis Shelley, Ian Campbell and David Fenlon to consider and respond to the indicative proposal.

The offer is subject to all the usual conditions such as due diligence and unanimous recommendation by the IBC.

The IBC will evaluate the proposal and keep shareholders informed of any material developments. However, for now the IBC recommends that shareholders take no action in relation to the offer.

Foolish takeaway

This is quite strange for some of the management team to be involved in a takeover offer. The offer of $6.60 is around a 50% premium to the current share price of $4.41 and looks attractive for shareholders.

I’ve always believed that BWX has a good long-term future, so it would be a shame to lose BWX from the ASX.

If a cash offer does come I’ll take it as it represents a good price for where the share price is currently languishing.

If I do end up selling my BWX shares, I'll consider putting the money into one of these top stocks.

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Motley Fool contributor Tristan Harrison owns shares of BWX Limited. The Motley Fool Australia owns shares of and has recommended BWX Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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