News

Tandou pours cold water on GPG's advances

17 Feb, 2010 10:41 AM

Listed farmer and water trader Tandou has rejected a $23 million bid for the company by well-known corporate raider Guinness Peat Group.

According to The Australian Financial Review, GPG executive director Gary Weiss launched on Monday a full cash offer of 33¢ a share for all of the Mildura-based company. More than four months ago GPG had initially offered 30¢ a share for half of Tandou, but struggled to gain shareholder support.

Under the proportional offer GPG managed to acquire 676,745 shares, lifting its stake in total to 20.67 per cent.

Tandou chief executive Guy Kingwill told shareholders to reject the offer and that prospects for the company have improved because of recent substantial rainfall in New South Wales and Queensland.

The Australian Financial Review

Source: http://www.afr.com

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comments

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Well, Tandou directors will now have their work cut out for them. With their majority shareholder in the hands of its bankers almost a certainty they will sell to GPG - unless the directors can find someone willing to pay more or actually have the company perform, both of which have not been achieved. A listed environment is not the place for most ag business, with all the ones I know off the top of my head trading well below their theorectical asset value (Prime Ag, Aust Cattle Co, Namoi, Tandou ... ).

Posted by JayDin, 18/02/2010 8:15:23 AM, on The Land

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