Australia's biggest equipment hire company, Coates Hire Ltd, is considering a $A1.5 billion ($NZ1.74 billion) -plus joint bid from private equity firm Carlyle Group and equipment hire group National Hire Group, the Australian Financial Review has reported.
Coates will not announce until its annual results on Wednesday whether it will accept the offer from Carlyle and National Hire, or offers from any other bidders, the paper said, after Coates opened its books to potential suitors last month.
"It is thought the Carlyle-National Hire bid values the company at comfortably above $A6 a share, the lowest level at which Coates' board is expected to entertain offers," the paper said. Coates shares ended at $A5.40 on Friday.
Another joint venture between a private equity firm and a trade player is also considering making a bid, but French equipment hire group Loxam did not make a formal offer ahead of Saturday's deadline, the report said.
Coates may also opt to proceed with its own internal restructuring.
COA Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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