Envestra backs Cheung Kong bid
Board recommends $2.37bn takeover offer from Hong Kong conglomerate.
Gas distributor Envestra (ENV) has backed a $2.37 billion takeover bid from Hong Kong conglomerate Cheung Kong, saying the offer is attractive to shareholders.
The suitor, owned by Asia's richest man Li Ka-shing, lobbed a sweetened all-cash offer of $1.32 per share this month, which was a 17 per cent premium to Envestra's last trading price before the bid.
Shares in Envestra soared on the offer, and were trading at $1.35 at 10.15am (AEST), against a benchmark index fall of 0.05 per cent, meaning the offer is now at a slight discount.
Cheung Kong has agreed that Envestra shareholders will be entitled to receive a final dividend of up to 3.5c per share in fiscal 2014, without any reduction to the offer price.
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