Macquarie Group (ASX:MQG) triumphs in battle over Vitalharvest shares

Macquarie Group (ASX: MQG) appears to have won the battle with private equity firm Roc for control of Vitalharvest Freehold (ASX: VTH) shares.

| More on:
Battle between ASX shares represented by 2 investors facing off short sellers

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Macquarie Group Ltd (ASX: MQG) seems to have won the battle with private equity firm Roc for control of Vitalharvest Freehold Trust (ASX: VTH) shares.

In a statement to the ASX this morning, the real estate investment trust (REIT) said it has accepted an offer from Macquarie Group subsidiary Macquarie Agricultural Funds Management (MAFM) to buy the trust at $1.26 per share. The price will not be discounted by the already paid dividend of 2.5 cents per share.

At the time of writing, Vitalharvest shares are down 0.39% to trade for $1.285 each – still 2.5 cents above the MAFM offer. The Macquarie Group share price is 0.25% lower to $160.09 each.

Let's take a closer look at today's developments.

Vitalharvest agrees to Macquarie offer

While the Vitalharvest board is unanimously recommending shareholders accept the scheme of arrangement with MAFM, and it has ceased contact with Roc, the takeover tumult may not actually be over.

On 26 April, Vitalharvest previously advised investors it was recommending shareholders accept an offer from Macquarie for $1.24 a share. It also said at the time it was ceasing contact with Roc. However, only 4 days later, Roc bettered the MAFM offer for Vitalharvest shares by 1 cent. Macquarie then upped its offer, which the REIT accepted today. Roc may still submit another offer.

Macquarie and Roc have been bidding with each other for Vitalharvest shares since November last year. The war has seen the share price of the trust increase from 78.5 cents to its record high of $1.30. This was achieved during intraday trading today.

If Roc does not submit an improved offer, Vitalharvest shareholders will vote to approve or reject the offer from MAFM by sometime in May, according to the statement.

What's been happening to Macquarie and Vitalharvest shares recently?

Over the past 12 months, Vitalharvest shares have increased in value by around 92%. As mentioned, this has mostly been driven by the bidding war between MAFM and Roc. If Roc decides to submit a higher offer, the Vitalharvest share price could increase, if its behaviour over the last 6 months is anything to go by.

The Macquarie share price, on the other hand, has increased by around 65% over the past year. It is unlikely today's news will have too much of an impact on its share price. Macquarie's primary operations centre around its banking division.

Vitalharvest has a market capitalisation of $238.1 million and Macquarie Group's is $57.8 billion.

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Mergers & Acquisitions

two men in business suits sit across from each other at a table with a chess board on it. Both hold their hands to their chins and look down in serious contemplation of their next move.
Resources Shares

'Not ruled out': Could BHP still buy Anglo-American?

This mega-deal might not be as dead as it looks.

Read more »

Happy couple looking at a phone and waiting for their flight at an airport.
Travel Shares

Flight Centre share price higher on acquisition news

The travel agent is betting big on cruises. Here's what you need to know.

Read more »

A young woman with her mouth open and her hands out showing surprise and delight as uranium share prices skyrocket
Consumer Staples & Discretionary Shares

Myer and Premier Investments shares jump on huge merger news

The two retailers are combining some of their operations. Let's dig deeper into the plan.

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

Guess which $9 billion company is acquiring another ASX stock

This big fish is looking to acquire a small fish in a $45 million deal.

Read more »

Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today
Mergers & Acquisitions

TPG Telecom shares rise on $5.2b asset sale to Vocus

The telco is unlocking value by divesting assets. Here's what's happening.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Technology Shares

Why are Appen shares sinking today?

Let's see what is going on with this high-flying tech stock today.

Read more »

A silhouette shot of two business man shake hands in a boardroom setting with light coming from full length glass windows beyond them.
Mergers & Acquisitions

Rio Tinto share price rises on $10b Arcadium Lithium takeover deal

Management believes the deal makes it a global leader in energy transition commodities.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Mergers & Acquisitions

Arcadium Lithium shares rocket 46% on Rio Tinto takeover approach

The mining giant could soon become the third largest lithium supplier.

Read more »