Sunbeam launches takeover of Breville

Shares in GUD Holdings, Sunbeam’s parent company, are now in a trading halt after the group announced its intention to takeover Breville Group Limited. The offer was made this morning, with GUD valuing shares in Breville at $2.20 – a significant increase on its close yesterday of $1.545.

Talking about this is GUD Chairman Clive Hall.

“The GUD Board believes this offer represents an extremely attractive opportunity for Breville shareholders to realise a substantial premium for their shares, while retaining an investment in a larger company with a stronger shareholder return and dividend track record, and participate in the potential operational and financial benefits of combining the businesses.”

GUD managing director Ian Campbell said such a merger would create a super small appliance supplier, capable of significant inroads into foreign markets.

“If we are successful in combining the highly complementary businesses of Sunbeam and Breville, the merged group will be a leading small domestic appliance business in Australasia, and will privde a strong platform for expansion in international markets, particularly North America.

As noted in GUD’s notice the Australian Securities Exchange, the key details of the takeover are as follows:

  • Offer of one GUD share for every four Breville, valuing Breville at $2.20 per share based on GUD’s 1-month volume weighted average price.
  • “Highly attractive premium” of 51 per cent for Breville shareholders.
  • Premium of 206 per cent to the Breville closing price on 28 May 2009, the day prior to GUD’s announcement of the acquisition of its 19.4 per cent stake in Breville.
  • The offer is subject to GUD obtaining a relevant interest in at least 50.1 per cent of Breville shares.

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