Bid raised to $7.20 to mop up more; Dubai investor now has an 87.19% stake
It took up to the very last minute, but the Al-Futtaim Group has succeeded in its takeover of retailer Robinson & Co.
The Dubai-based investor managed to acquire more than 50 per cent of Robinson yesterday - on the very last day of its conditional bid - when the Lippo Group decided to tender into the offer.
Al-Futtaim’s offer for Robinson is now unconditional, i.e. the deal will have to go through, being no longer dependent on any conditions to succeed.
Al-Futtaim has also extended the deadline for its offer to April 30 and raised its bid price to $7.20 a share, from $7 previously - an indication of its determination to gain as much control of Robinson as possible.
‘Robinson has strong brand equity and an enviable heritage of meeting and exceeding customers’ expectations. We fully intend to continue with, and surpass, this proud tradition,’ James Gillespie McCallum, director of Al-Futtaim unit ALF Global, said yesterday.
‘We look forward to working with the company’s management to explore areas where Robinson can leverage on the Al-Futtaim Group’s retail expertise as well as further expand the company’s platform in the region.’
The group said yesterday it will not revise its offer or increase its offer price any further.
Al-Futtaim had looked to be in danger of failing in its takeover plan earlier, no thanks to Robinson’s share price trading stubbornly above the offer price of $7. Robinson’s buoyant share price performance had already forced Al-Futtaim to raise its bid from the original price of $6.25 offered in January.
Robinson shares closed at $6.86 yesterday, down 14 cents.
But the Middle Eastern group managed to triumph yesterday when the Lippo Group decided to accept its offer - and sell its 29.9 per cent stake to Al-Futtaim.
Lippo’s stake pushed the total number of acceptances received by Al-Futtaim past the critical 50 per cent mark, which turned its offer unconditional.
Al-Futtaim also has acceptances - pledged to it earlier by Silchester International, Aberdeen Asset Management Asia and Tecity - amounting to 23.18 per cent.
Al-Futtaim’s Robinson stake hit 60.8 per cent after Lippo’s acceptance. The stake then rose further to 87.19 per cent by 7pm yesterday. Of Al-Futtaim’s revised offer, Lippo president and Robinson deputy chairman Stephen Riady said: ‘The improved offer at $7.20 represents a ‘win-win’ for all parties. We believe the Al-Futtaim Group understands and appreciates the Robinson tradition and business and we are leaving Robinson in good hands.’
‘At the same time, Auric Pacific (the Lippo unit which owned the Robinson stake) will be able to utilise the proceeds from the divestment to focus on its other retail and food and beverage businesses,’ he added.
Lippo’s decision to tender into the offer came as something of a surprise to observers, given how hard the Indonesian group fought in 2006 to acquire a stake in Robinson. Lippo had bid $7.90 a share then - a price rumoured to be well above the offers made by other interested parties.
And, throughout Al-Futtaim’s offer for Robinson, Lippo has remained mum on its plans for its stake in the retailer. But BT had speculated that Lippo would likely sell its stake to Al-Futtaim. Lippo’s decision, back in 2006, to buy under 30 per cent of Robinson - even though a larger stake was available - so as to avoid having to make a general offer for the whole company, was an indication that Lippo was not keen on taking over all of Robinson.
The regional potential of Robinson - as a successful retail brand in Asia - has also not been exploited to the extent that Lippo had first hoped, when it bought its stake. Generous dividend payouts by Robinson since 2006 have also meant that Lippo’s outlay for its stake has dropped to $6.70 a share, from the $7.90 it paid - giving Lippo a financial incentive to now sell its stake to Al-Futtaim for $7.20.
Source : Business Times - 4 Apr 2008
It took up to the very last minute, but the Al-Futtaim Group has succeeded in its takeover of retailer Robinson & Co.
The Dubai-based investor managed to acquire more than 50 per cent of Robinson yesterday - on the very last day of its conditional bid - when the Lippo Group decided to tender into the offer.
Al-Futtaim’s offer for Robinson is now unconditional, i.e. the deal will have to go through, being no longer dependent on any conditions to succeed.
Al-Futtaim has also extended the deadline for its offer to April 30 and raised its bid price to $7.20 a share, from $7 previously - an indication of its determination to gain as much control of Robinson as possible.
‘Robinson has strong brand equity and an enviable heritage of meeting and exceeding customers’ expectations. We fully intend to continue with, and surpass, this proud tradition,’ James Gillespie McCallum, director of Al-Futtaim unit ALF Global, said yesterday.
‘We look forward to working with the company’s management to explore areas where Robinson can leverage on the Al-Futtaim Group’s retail expertise as well as further expand the company’s platform in the region.’
The group said yesterday it will not revise its offer or increase its offer price any further.
Al-Futtaim had looked to be in danger of failing in its takeover plan earlier, no thanks to Robinson’s share price trading stubbornly above the offer price of $7. Robinson’s buoyant share price performance had already forced Al-Futtaim to raise its bid from the original price of $6.25 offered in January.
Robinson shares closed at $6.86 yesterday, down 14 cents.
But the Middle Eastern group managed to triumph yesterday when the Lippo Group decided to accept its offer - and sell its 29.9 per cent stake to Al-Futtaim.
Lippo’s stake pushed the total number of acceptances received by Al-Futtaim past the critical 50 per cent mark, which turned its offer unconditional.
Al-Futtaim also has acceptances - pledged to it earlier by Silchester International, Aberdeen Asset Management Asia and Tecity - amounting to 23.18 per cent.
Al-Futtaim’s Robinson stake hit 60.8 per cent after Lippo’s acceptance. The stake then rose further to 87.19 per cent by 7pm yesterday. Of Al-Futtaim’s revised offer, Lippo president and Robinson deputy chairman Stephen Riady said: ‘The improved offer at $7.20 represents a ‘win-win’ for all parties. We believe the Al-Futtaim Group understands and appreciates the Robinson tradition and business and we are leaving Robinson in good hands.’
‘At the same time, Auric Pacific (the Lippo unit which owned the Robinson stake) will be able to utilise the proceeds from the divestment to focus on its other retail and food and beverage businesses,’ he added.
Lippo’s decision to tender into the offer came as something of a surprise to observers, given how hard the Indonesian group fought in 2006 to acquire a stake in Robinson. Lippo had bid $7.90 a share then - a price rumoured to be well above the offers made by other interested parties.
And, throughout Al-Futtaim’s offer for Robinson, Lippo has remained mum on its plans for its stake in the retailer. But BT had speculated that Lippo would likely sell its stake to Al-Futtaim. Lippo’s decision, back in 2006, to buy under 30 per cent of Robinson - even though a larger stake was available - so as to avoid having to make a general offer for the whole company, was an indication that Lippo was not keen on taking over all of Robinson.
The regional potential of Robinson - as a successful retail brand in Asia - has also not been exploited to the extent that Lippo had first hoped, when it bought its stake. Generous dividend payouts by Robinson since 2006 have also meant that Lippo’s outlay for its stake has dropped to $6.70 a share, from the $7.90 it paid - giving Lippo a financial incentive to now sell its stake to Al-Futtaim for $7.20.
Source : Business Times - 4 Apr 2008
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