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Caltex shares on watch on takeover bid news

The Caltex Australia Limited (ASX: CTX) share price is on watch this morning after confirming it is an ASX takeover target.

What did Caltex announce this morning?

Caltex noted recent media reports about a potential takeover proposal for the Aussie petrol business.

Caltex confirmed it had received an unsolicited, conditional, confidential, non-binding and indicative proposal from Canadian convenience store multinational Alimentation Couche-Tard (ACT) to acquire all of its shares.

The indicative cash offer price is $34.50 per share while the Caltex share price closed at $29.79 yesterday.

That would represent a 15.81% premium on yesterday’s closing price and follows ACT’s earlier approach at an indicative cash price of $32.00 per share.

The Caltex share price could move today following the news, which is subject to a number of conditions.

These including obtaining Foreign Investment Review Board (FIRB) approval and a unanimous recommendation by the Caltex Board. The Board is currently considering the proposal.

What else has Caltex announced recently?

The takeover proposal confirmation comes hot on the heels of yesterday’s announcement by Caltex.

The Aussie petrol business announced its intention to undertake an initial public offering (IPO) of its Convenience Retail freehold sites. Caltex is looking to IPO up to a 49% stake in 250 freehold sites. The move comes as the company continues to search for ways to unlock value for its shareholders.

The Caltex share price jumped higher on Monday following the IPO news.

Caltex’s trading update also confirmed Convenience Retail EBIT between $190 million and $210 million in FY19.

The company put softer market conditions aside to deliver a solid operating performance in FY19, said CEO Julian Segal.

How have Caltex shares performed in 2019?

Prior to this morning’s takeover proposal announcement, the Caltex share price had climbed 18.36% higher so far this year, which isn’t too far off the S&P/ASX 200 Index (INDEXASX: XJO) in terms of year-to-date performance.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.