Greencross rejects proposed takeover

petbarnListed vet and pet care retailer Greencross has rejected a $736 million takeover proposal from global private investment firm TPG.

Greencross also said on Wednesday that it had received proposals and expressions of interest from other parties but had rejected them because they were conditional, uncertain and undervalued Greencross.

Greencross operates the Petbarn, City Farmers, Animates and Greencross Vets brands, with 209 stores, 142 clinics, 43 in-store grooming salons and 111 in-store dog washes across Australia and New Zealand.

The Australian Financial Review has reported that just before Christmas TPG had proposed to pay about $6.45 for each of the Greencross shares that it did not already own.

“Greencross notes the article in the AFR today indicating that TPG had made an indicative proposal to acquire all the shares that it did not already own at $6.45 per share,” Greencross said in a statement on Wednesday.

“This non-binding indicative proposal was highly conditional and at a price which fundamentally undervalues Greencross.”

Greencross said its board had not previously disclosed the proposals from TPG and other parties given their highly conditional and confidential terms.

The company said it was confident of its performance and growth prospects.

Shareholders were advised to take no action in response to the media speculation.

On December 23, TPG filed a substantial shareholder notice with the Australian Securities Exchange showing that it held a stake of 6.92 per cent in Greencross.

Greencross shares were 12 cents higher at $6.93 at 1148 AEDT on Wednesday.

Greencross will release its half-year financial results on February 16.

The company booked a full-year profit of $19.1 million in the 2014/15 financial year – up 114.9 per cent on the prior year.

AAP

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