23 Apr 2015
What has happened?
Toll Holdings (TOL) received a binding full cash takeover offer by Japan Post at $9.04, valuing the company at $6.5bn. In addition, those TOL shareholders on the register on 4 March will also receive TOL interim dividend of 13 cents per share.
Unsurprisingly, the TOL board has unanimously recommended the takeover offer. The stock was trading a little over $6 per share prior to the offer, meaning the offer was at a very generous 49% premium. The stock price has since moved higher, currently trading just under the offer price.
For more detailed information, please read our 'Stock insight: Toll Holdings takeover bid' from March 2015.
The takeover bid has received both Australian and Japanese regulatory approvals, as expected.
Shareholders should accept the offer given the large premium being paid and the limited opportunities for TOL to grow domestically.
If you would like to discuss this with your PSK adviser, please call us on (02) 9324 8888 or click here.