This article is from the Australian Property Journal archive
THE Eureka board and key shareholder Ben Cottle’s Filetron continue to flatly rejected Aspen’s takeover attempts.
Aspen lifted its offer slightly last week – from 0.26 of its shares for each Eureka share to 0.28 – which was also rejected, and the Eureka board again yesterday vocalised its opposition to the overtures after receiving an independent expert’s summation.
The board said the implied value of the revised offer of $0.491 per Eureka share is below the independent expert’s fair value of Eureka shares on a 100% controlling interest basis of $0.52 to $0.55 per Eureka share, representing a 6% to 11% discount, and a material discount to the last closing price at which Eureka shares traded on the ASX of $0.532, representing an 8% discount.
“The independent expert continues to conclude that the revised offer is neither fair nor reasonable for Eureka shareholders not associated with Aspen,” Aspen’s board said.
Ben Cottle’s Filetron maintains undervalues the affordable accommodation provider. Filetron holds 19.68% of Eureka’s shares and the board a collective 2.3%.
