UK franchised motor dealer HR Owen Plc (LON:HRO) said today that its board had recommended that shareholders should tender their shares in the increased GBP1.70 (USD2.69/EUR2.02) per share offer from investment holding company Berjaya Philippines Inc (BPI) as it represents a fair value for the company.
The bidder, which originally offered GBP1.30 per share, sweetened its bid on Thursday after buying 2.4m shares, or a 10% stake, from JP Morgan Chase & Co (NYSE:JPM), raising its holding to 40.8%. It later bought a further 175,000 shares and now holds 41.5% in the target.
The most recent offer equals a premium of 40.5% over the GBP1.21 closing share price on 16 July 2013, the day before the announcement of the original offer, the target said. It values the target at some GBP41m, according to Reuters.
HR Owen said that the board had decided to support the raised offer, considering the limited liquidity of the company’s shares and the fact that the bid was final. It took counsel from Rothschild.
The offer is due to run until 27 September 2013.