5 September 2007
National Hire Group Limited (ASX Code: NHR)
NATIONAL HIRE HAS SUBMITTED A JOINT PROPOSAL WITH THE CARLYLE
GROUP TO COATES HIRE LIMITED AT A REVISED PRICE OF $6.40 PER SHARE
PLUS FRANKING CREDITS
National Hire Group Limited (National Hire) notes today’s press speculation regarding a
revised offer for Coates Hire Limited (Coates) at $6.40 per share and Coates’
subsequent announcement that it has received and that its Independent Board
Committee is currently considering a revised offer for the company.
In response to an Australian Securities Exchange query, National Hire confirms that is
has submitted a revised joint proposal with The Carlyle Group (Carlyle) to Coates to
acquire 100% of the outstanding shares in Coates for $6.40 per share to be
implemented by way of a Scheme of Arrangement (Coates Scheme).
The revised proposal is an all-cash offer of $6.40 per share for 100% of the issued share
capital of Coates. The revised proposal was submitted on Friday 31 August 2007 and is
$1.05 or 20% above the closing price of Coates shares of $5.35 on Thursday 30 August
2007. The revised proposal is equivalent to $6.29 per share on an ex-dividend basis
and compares to a closing price on 30 August 2007 of $5.24 on an ex-dividend basis.
Under the proposal, Coates could pay a fully franked dividend of up to 64 cents per
share (including the fully franked 11 cent final dividend that Coates declared on 29
August 2007), in which case the offer price would reduce by one cent for each cent of
dividend paid. The franking credits attaching to such a dividend could deliver additional
value above the $6.40 cash per share offer price of up to 27 cents per share to
shareholders who are able to fully utilise the credits.
The proposal envisages that the Coates Scheme would be subject to customary
conditions including a recommendation from the Coates Board of the proposal, approval
by Coates shareholders and acquisition financing that has already been committed by
five leading Australian and global banks. The Coates Scheme would be conditional upon
National Hire shareholder approval for the joint venture arrangements with Carlyle.
National Hire and Carlyle believe the proposal provides the shareholders of Coates with
a very attractive financial outcome and a high degree of certainty of completion and
would welcome the opportunity to work with Coates to put the proposal to Coates
shareholders for their consideration.
COA
coates hire limited
