The Adbri Ltd (ASX: ABC) share price is having a stunning start to the week.
In morning trade, the ASX 300 stock is up 34% to $3.04.
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Why is this ASX 300 stock rocketing?
Investors have been scrambling to buy the building materials company's shares today after it received a non-binding indicative proposal from CRH and its largest shareholder, the Barro Group.
According to the release, the parties have put forward a $3.20 cash per share proposal, which represents a 41% premium to where the ASX 300 share last traded.
While it has stopped a touch short of accepting the offer, which is best and final, Adbri has advised that it has entered into a process and exclusivity deed with CRH and the Barro Group in order to progress a potential transaction.
It notes that, subject to the agreement of a binding scheme implementation agreement on terms acceptable to the parties, the intention of the ASX 300 share's Independent Board Committee (IBC) is to unanimously recommend the proposal.
This is in the absence of a superior proposal and subject to an independent expert concluding that the scheme of arrangement is fair and reasonable and in the best interests of Adbri shareholders.
CRH and the Barro Group have been granted exclusive due diligence access until 28 February 2024.
For now, Adbri advised that shareholders do not need to take any action. It also warned that there is no certainty that the proposal will lead to a binding proposal for consideration.
The company will continue to keep shareholders updated in accordance with its continuous disclosure obligations.
Following today's gain, this ASX 300 stock is now up over 80% since this time last year.
