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BWX Ltd (ASX:BWX) announces a takeover update

This afternoon BWX Ltd (ASX: BWX) gave an update to investors about the progress that it has made in regards to the takeover offer by Bain Capital, John Humble and Aaron Findlay.

Readers may remember that a proposal was put to BWX about acquiring 100% of the shares at $6.60 per share.

The BWX Independent Board Committee (IBC) announced that it intends to give Bain the opportunity to conduct due diligence.

BWX said that a data room is being prepared to facilitate due diligence and Bain will be granted access to the data room next week.

Bain has been invited to the data room on a non-exclusive basis and on the basis that if the Bain proposal turns into a binding offer it may still not be recommended to shareholders by the IBC.

The strategic review that was previously announced is still ongoing. BWX Chairman Denis Shelley said “The Independent Board Committee believes that the strategic initiatives pursued by BWX will deliver significant value for shareholders in the medium-to-long term.

“We are confident in the Company’s outlook as a standalone company. Nevertheless, it is possible that a party may put forward a final binding offer which sufficiently values BWX’s attractive growth opportunities such that the IBC, and ultimately shareholders, may consider it more attractive than remaining as a standalone listed company.”

The IBC again reminded investors that there is no guarantee anything will happen.

Foolish takeaway

This is a pretty slow-moving takeover, but if it is going to occur then it’s a step in the right direction. If the offer does go through then there is a decent amount of upside to the current share price of $5.84. However, I’d only want to buy if the offer falls through and then the share price falls because there’s no guarantee of anything.

There’s several things to like about BWX’s future such as the growth of natural beauty products globally, the stable of brands that BWX owns and its potential growth into other geographical areas.

Instead of BWX, I’d much rather put my money into one of these top growth shares.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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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