SA-based transport company K&S Corporation has announced a recommended takeover bid for national carrier Scott Corporation which would result in a merged group valued at $200 million.
In a statement to the ASX this morning, K&S said Scott Corp (SCC) shareholders who accepted the share offer would receive either 59 cents or 0.345 K&S shares for each of their SCC shares, plus a fully franked special dividend of 5 cents per SCC share.
The chairman of SCC’s independent board committee, Brett Johnson, said it believed the offer recognised “the strategic value of our business, our blue-chip customer base, and our investment in a modern fleet of specialised assets.”
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The board committee intends to recommend the offer subject to there being no better proposal and independent advice that it is fair and reasonable. The offer is supported by SCC’s major shareholder, AA Scott Pty Ltd.
“K&S Corporation’s board views a merger with Scott Corporation as an excellent way to expand the scope and scale of our existing business,” K&S deputy chairman and lead independent director Greg Boulton said in the statement.
“Scott Corporation operates in different functional and geographic markets to K&S Corporation and offers an opportunity to diversify our business.”
