DuluxGroup (DLX) share price rises on takeover offer
Stock
Dulux Group (DLX) $9.72 as at 17/04/2019
Event
Paint manufacturer Dulux has exploded out of the blocks this morning, trading over 25% higher after the company confirmed it had received a takeover offer from Japanese company Nippon.
The offer at $9.80/share was worth a 27.8% premium to yesterday’s close, with the stock trading through that level early in the session to a high of $9.87. The bid includes a fully franked dividend component and hence is worth more than $9.80 to many shareholders that are able to use the credits.
The board has unanimously recommended the bid, saying “it provides an opportunity for shareholders to relise a significant premium to market value and is on terms that reflect the strategic value of DuluxGroup.”
Nippon is a global paint supplier that only has a small footprint in the Australian market. The bid is well above the all-time high for Dulux, which was de-merged from Orica back in 2010.
DuluxGroup (DLX) Chart
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