Australian wealth manager ClearView spurns CCP BidCo's $220-mn bid
17 July 2012
Australian investment and insurance firm ClearView Wealth Ltd has rejected an unsolicited $220-million takeover bid from CCP BidCo Pty Ltd, an entity owned by private equity firm Crescent Capital Management Pty Ltd.
ClearView's board has unanimously rejected the takeover attempt on the grounds that the offer price is inadequate and it materially undervalues the company.
''The Board continues to advise ClearView shareholders to take no action in relation to CCP BidCo's offer,'' ClearView said in a statement.
Last week CCP BidCo made the takeover offer for ClearView at A$0.50 per share.
The offer does not reflect the strong uplift in the business from ClearView's new products, services and enhanced distribution, ClearView said.
ClearView's major shareholder Guinness Peat Group Plc with about 48-per cent stake in the company has said that ''the price offered represents a substantial discount to the fair value of ClearView and is wholly inadequate''.