An offer document for Asia Distribution Solutions Limited still has not been posted and it could be a few months before it is.
ADSL says that the all share offer by Yarraman Winery, Inc values the company at $27m (£16m). The change in the sterling dollar exchange rate makes the bid appear more attractive. An exchange rate of $1.64/£ is used.
The bid apparently corresponds to up to 80 cents per ADSL share, or 42p a share. That is based on a Yarraman share price, which is not based on a particularly liquid market in the shares.
The apparent premium still has not helped the ADSL share price which has been steady at 20p for some time.
Yarraman is still refining the process of the offer. It is trying to provide for registration of the offer shares with the SEC so that ADSL shareholders can trade in them. This could take up to six months.
Yarraman has agreed to acquire the Jugiong Vineyard in South Australia for a $6m loan note and the assumption of $5m of debt. The completion of the deal is dependent on the ADSL bid going through.
ADSL is still recommending the bid. The offer document “will be posted as soon as possible”.
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