Business

Shareholders back Greencross acquisition

Shareholders of pet-care group Greencross have voted overwhelmingly to support the proposed acquisition by private investment firm TPG.

98.81 per cent of proxy shareholders voted in favour of the scheme arrangement, while only 0.32 per cent voting against. Final results are to be revealed on the ASX, though the outcome is not expected to change.

Immediately following the shareholder meeting, shares in Greencross spiked 0.54 per cent to 5.54 cents per share, up from 5.1 cents per share the day prior.

Previously, the Greencross board had unanimously recommended shareholders vote in favour of the arrangement, which will see 100 per cent of the business acquired, and afford shareholders $5.55 per share – implying an equity value of $675 million.

These figures are below those of a previous take over made by TPG in 2016, which offered shareholders $6.45 per share, or $736 million, which the business turned down on the basis it “fundamentally undervalues Greencross.”

TPG’s head of Australia and New Zealand Joel Thickens has previously said the investment firm is confident the pet-care group will continue to grow under private ownership.

Source: Inside Retail Australia