Who doesn't love a Canadian? I hope it's these guys.
Canadian bid for MCG fair: expert
May 4, 2009
An independent expert has concluded the $1.37 billion takeover offer for Macquarie Communications Infrastructure Group by a Canadian pension fund was "fair and reasonable'' and in the best interests of investors.
The finding prompted MCG independent directors to reiterate their endorsement for the $2.50-a-share offer from the Canada Pension Plan Investment Board. The offer includes MCG's $7.3 billion worth of debt.
Independent expert Deloitte estimated fair value for Macquarie securities was in the range of $2.27 and $3.13 a share. This compares with the 83 cents a share that MCG was trading at immediately before the takeover bid was made on March 31.
The independent director committee of MCG said the fully financed cash offer was attractive especially when compared with the less certain and longer term alternatives that have been explored. Concerns have previously been raised about the satellite fund being able to refinance its debt.
"We are confident, in the face of the added risk profile created by ongoing disruption in equity and debt capital markets, that the acquisition...is a more certain means of providing increased value to MCG security holders than the alternatives identified,'' said Malcolm Long, the chairman of MCG's committee of independent directors.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)