Three Australian buyouts worth $2.35 billion emerge in end-of-year deal rush (updated)

Adbri

18/12/2023 05:26

(Adds Australian market and M&A data in paragraphs 2-4)
    By Scott Murdoch
       SYDNEY, Dec 18 (Reuters) - Australian building products
group Adbri Ltd  ABC.AX  and pension firm Link Group  LNK.AX 
were among three takeover targets facing bids worth A$3.5
billion ($2.34 billion) made on Monday in a year-end rush of
deals involving listed companies.
    The spree comes as Australia's stock market experiences a
late surge, with the main S&P/ASX200 Index  .AXJO  having gained
5.6% so far this quarter as investors predict interest rates
have peaked.
    Total corporate buyout activity in Australia fell 23% in
2023 to be worth $99.48 billion, according to LSEG data.
    However, inbound mergers and acquisition (M&A) activity from
overseas buyers jumped 58% to $40.9 billion, thanks largely to
Newmont Corp  NEM.N  buying gold miner Newcrest for $19.7
billion.  
    Adbri shares jumped 31% after it said it was in exclusive
talks with international building materials group CRH  CRH.N  
and major shareholder Barro Group for a A$2.1 billion takeover
offer.
    The two firms have offered A$3.20 per share for Adbri which
is a 41% premium to the company's closing price on Friday.
    Barro, a family-owned private Australian group, owns 43% of
Adbri, and CRH, which is London and U.S. listed, has a 4.6%
interest in the takeover target through a cash-settled
derivative, they said in a statement.
    Adbri's independent board committee has recommended the
takeover and the two buyers will now undertake exclusive due
diligence ahead of lodging a binding bid.
    Link shares jumped 27.65% Monday after it said it had
received a A$1.2 billion bid from Mitsubishi UFJ Financial Group
 8306.T , Japan's largest banking group.
    Mitsubishi said it held a 6.4% stake in Link and the
takeover target's board recommended the bid in the absence of a
superior offer emerging for the company.
    Meanwhile, dental group Pacific Smiles  PSQ.AX  said a A$223
million unsolicited bid from private equity firm Genesis Capital
was "opportunistically timed". It said its board would consider
the offer before making a recommendation to shareholders. 
    Pacific Smiles shares rose nearly 16% on the takeover offer.
($1 = 1.4928 Australian dollars)

 (Reporting by Scott Murdoch; Editing by Sonali Paul)
 ((Scott.Murdoch@thomsonreuters.com))