trending Market Intelligence /marketintelligence/en/news-insights/trending/ucdxqxoxg6trbkzzv1iyfa2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Yellow Brick Road to reject Mercantile Investment's takeover offer

Banking Essentials Newsletter December Edition Part 2

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

Yellow Brick Road to reject Mercantile Investment's takeover offer

Yellow Brick Road Holdings Ltd.'s directors advised its shareholders to reject Mercantile Investment Co. Ltd.'s offer to buy all of the company shares, saying the offer is "grossly inadequate."

Mercantile Investment unit Mercantile OFM Pty Ltd. had in August launched an off-market takeover bid to acquire company shares it does not own at 9 Australian cents per share, or A$20.3 million in the aggregate.

After fully considering the offer, Yellow Brick Road's board said Sept. 3 that the offer undervalues the company's shares relative to peer market valuations and does not have any control premium typically paid to shareholders in comparable takeover transactions.

Further, the company's shares have traded consistently higher than Mercantile OFM's offer price since the takeover was announced.

The board plans to reject the offer in respect of all shareholdings they own and advised shareholders to do the same.