SEQ Hospitality Group Enhances Offer for Eumundi Group Limited
EBG (EBG) Share Update December 2024 Sunday 15th
SEQ Hospitality Group Raises Offer for Eumundi Group Shares
SEQ Hospitality Group Pty Ltd has announced an increase in its offer for Eumundi Group Limited shares, raising the cash consideration from $1.55 to $1.62 per share.
Instant Summary:
- Offer price increased from $1.55 to $1.62 per share.
- SEQ now holds a 69.66% relevant interest in Eumundi shares.
- Eumundi's board unanimously recommends accepting the offer.
Offer Details
SEQ Hospitality Group Pty Ltd has announced an increase in the offer price for Eumundi Group Limited shares from $1.55 to $1.62 per share. This decision follows SEQ acquiring a relevant interest in 69.66% of Eumundi's shares as of 13 December 2024.
The increased offer is part of SEQ's off-market takeover bid under Chapter 6 of the Corporations Act 2001, and it applies to all shareholders who accept the offer, regardless of when they do so. The offer is fully funded, with SEQ having secured the necessary financial backing to cover the revised maximum consideration amount of approximately $80.62 million, should all shares be tendered.
Board Recommendation
The board of Eumundi Group has unanimously recommended that shareholders accept the offer in the absence of a superior proposal. The board's recommendation is contingent upon the Independent Expert continuing to conclude that the offer is fair and reasonable.
Directors Mr. Ganim and Mr. De Luca, who together hold a significant portion of Eumundi shares, have already accepted the offer for their shares, reinforcing the board's support for the bid.
Market Context
The increased offer represents a premium of 28.6% over the closing price of Eumundi shares on 29 October 2024. Additionally, it is 38.2% higher than the volume-weighted average price (VWAP) for the 30 days prior to the announcement date. This premium highlights the attractiveness of the offer compared to recent trading prices.
The increased offer from SEQ Hospitality Group is likely to positively impact Eumundi Group's stock price in the short term, as it represents a significant premium over recent trading prices. The unanimous recommendation from Eumundi's board further strengthens investor confidence in the offer's value.
Investor Reaction:
Analysts are likely to view the increased offer favorably, given the substantial premium it represents over recent trading prices. The board's unanimous recommendation is also expected to reassure investors of the offer's merits.
Conclusion:
Investors in Eumundi Group should consider accepting the enhanced offer from SEQ Hospitality Group, especially given the board's strong endorsement and the attractive premium offered. Monitoring any further developments or competing proposals will be crucial as the offer period progresses.