Melrose raises offer for Charter
Industrial turnaround investor Melrose has raised its offer for engineering group Charter International by 60 pence to £8.40 as it seeks to win round its shareholders after an earlier rejection.
The new offer, an increase on its previous £7.80 unsolicited bid, was at a 40 per cent premium to Charter’s closing share price yesterday.
Melrose said the offer would be formed of newly-issued Melrose shares and a balance of cash, and said it would be flexible on the proportions of each they would grant to Charter shareholders.
The offer assumes Charter is and will not pay any dividends, which would affect the amount of cash shareholders receive from the company.
“The board of Melrose believes its approach is in the best interests of Charter shareholders as it delivers a proven management team with a demonstrable track record in creating value for shareholders along with an immediate 40 per cent premium,” it said in a statement.
Charter told its shareholders to wait for board advice.
“The board of Charter is considering this proposal and a further announcement will be made in due course. In the meantime, shareholders in Charter are urged to await further advice from the Board,” it said.
Shares in Charter closed up 1.5 per cent at £8.20.