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Caltex share price on watch after takeover talks advance

The Caltex Australia Limited (ASX: CTX) share price will be one to watch on Monday.

This morning the fuel retailer provided the market with an update on a recent takeover approach.

What is happening?

Last week Caltex revealed that Canada’s Alimentation Couche-Tard had returned with an improved takeover offer.

The multinational convenience store giant made an improved conditional, nonbinding and indicative proposal to acquire all of the shares in Caltex by way of a scheme of arrangement at an indicative cash price of $35.25 per share. This will be less any dividends declared or paid by Caltex prior to completion.

This follows two approaches made by Alimentation Couche-Tard over the last few months which were rejected by the Caltex board. Those offers were for indicative cash prices of $32.00 and then $34.50 per share. Which means that the latest offer is a 10.1% improvement on its first offer.

What did Caltex announce today?

This latest offer appears to have gone down better with the Caltex board.

According to the release, the company’s board believes it is in the interests of Caltex shareholders to engage further with Alimentation Couche-Tard following its latest offer.

As a result, the company has decided to provide Alimentation Couche-Tard with the opportunity to conduct additional due diligence on a non-exclusive basis.

However, once again, the company has warned that the revised proposal is subject to various conditions and there is no certainty that it will result in a change of control transaction.

Other takeover approaches.

Caltex isn’t the only company which is subject to a takeover approach.

Also being targeted at present are the likes of National Storage REIT (ASX: NSR) and Village Roadshow Ltd (ASX: VRL).

GAW Capital Partners and Public Storage are battling for National Storage, whereas Pacific Equity Partners has tabled a conditional proposal for Village Roadshow.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT. 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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