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.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.