Adbri shares rocket 30% after takeover bid
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The news: Cement manufacturer Adbri has entered into preliminary talks for a $2.1 billion takeover offer from one of its main shareholders Barro Group and multinational materials supplier CRH.
Adbri and its suitor have entered into a process and exclusivity deed.
The numbers: Barro Group and CRH on Monday offered $3.20 each for all shares that Barro does not own. The offer is a 41 per cent premium on the Friday closing price of shares.
Adbri shares jumped 30% to $2.97 in early trading on Monday.
The context: Adbri has three Barro Group directors: chairman Raymond Barro, Rhonda Barro and Geoff Tarrant. They have stood down from the board while the proposal is being considered.
The independent board committee said it plans to recommend shareholders accept the offer.
The source: Adbri
