DuluxGroup has told building products group Alesco shareholders they have an extension on an offer to sell their shares.
The original deadline of August 28 has been pushed back by two weeks to September 11.
DuluxGroup’s statement was described by the Business Spectator as “strongly worded”, claiming that share values would drop significantly if the hostile bid on “a company that has continually under-performed and under-delivered” was not accepted.
The offer of $1.90 per share and a 15 cent fully franked dividend is a 45% premium on the pre-bid value of Alesco shares. The bid is potentially worth $210 million.
Dulux currently holds 42.35% of Alesco’s stock, after major shareholders had accepted the offer, the letter stated.