The independent financial adviser (IFA) for Catalist-listed 800 Super Holdings is of the opinion that the financial terms of the Lee family's $0.90 per share cash offer are fair and reasonable.
In a letter contained in 800 Super's circular to shareholders yesterday, Novus Corporate Finance, the IFA for the offer, advised 800 Super's independent directors to recommend that shareholders accept the offer.
The independent directors have also agreed with the IFA and recommended that shareholders accept the offer.
This is unless shareholders are able to obtain a price higher than the offer price on the open market, taking into account all brokerage commissions and transaction costs in connection with open market transactions, the independent directors and the IFA said.
The Lee family that owns 800 Super made a voluntary conditional offer for the rubbish collection firm last month, in a bid to delist it. It is offering $0.90 in cash for each share, in a deal that values the company at $161 million, and does not intend to increase the offer price.
The Lee family is tapping private equity firm KKR to finance the offer. KKR will provide a combination of debt and structured equity financing, from pools of capital including KKR's Private Credit Opportunities II fund and proprietary investment vehicles.
The offer will close at 5.30pm on June 24.