McGrath surges after board backs takeover offer
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The news: Shares in McGrath Limited have surged after the listed real estate agency’s board agreed to a takeover offer from global rivals Knight Frank and Bayleys.
The numbers: McGrath’s board, which currently controls 48.1% stake in the company, backed a 60 cents a share offer in cash from the suitors. Prior to the offer, the companies shares had closed at 47 cents each on Friday.
Following the announcement, the stock was up 25.5% to 59 cents in early trading on the ASX.
The context: Shareholders have the option to take an unlisted scrip offer in place of the cash offer. The company said founder and CEO John McGrath will elect to receive the unlisted scrip alternative for his 23.3% stake. He will continue in his role as CEO.
The company’s shares have struggled since its 2015 listing amid a volatile property market and numerous management changes.
What they said: “I look forward to continuing to work with the great team at McGrath but also in taking advantage of the opportunities afforded by international partners Knight Frank and Bayleys,” John McGrath said.
The source: ASX announcement
