Greencross share price rises after receiving court approval for the takeover

The Greencross Limited (ASX: GXL) share price is up more than 1% after the Federal Court of Australia approved the convening of a meeting of Greencross shareholders to vote on the takeover.

Private equity firm TPG has bid $5.55 cash per Greencross share to take over the company. Independent expert Grant Thornton Corporate Finance has concluded the offer price is fair and reasonable, and is therefore in the best interests of shareholders in the absence of a superior offer.

Grant Thornton said that the full underlying value of Greencross is between $5.05 and $5.67 per share, meaning that the potential cash payment of $5.55 per share is within the top quartile of this range.

Shareholders will meet on Wednesday, 6 February 2019 to decide whether to vote for the takeover to go ahead or not. If that’s approved the takeover scheme will be implemented on 27 February 2019 with the special dividend date set at 20 February 2019.

If the takeover goes ahead there one will be one less veterinary business on the ASX, two of the remaining players are National Veterinary Care Ltd (ASX: NVL)

Greencross shareholders will need to decide if they want to re-invest their money back into other ASX shares.