Caltex receives ‘unsolicited’ $8.6 billion takeover offer from Canadian convenience chain

Caltex Australia has confirmed that it received a $8.6 billion takeover offer from Canadian convenience store operator Alimentation Couche-Tard Inc. to acquire all shares in the company.

The fuel and convenience retailer said in a statement to the ASX on Tuesday morning that the offer was “unsolicited, conditional, confidential, non-binding and indicative”.

The indicative cash price per share was $34.50 less any dividends, with the offer following a previously rejected bid of $32 per share.

The discussions between Caltex and ACT are at a preliminary stage, the proposal is highly conditional and there is no certainty that these discussions will result in a transaction,” the retailer said on Tuesday.

“The Proposal would permit Caltex to pay a special dividend or other distribution. The Proposal followed an earlier approach from ACT at an indicative cash price of A$32.00 per share, which was rejected on the basis that the indicative price was inadequate.”

Caltex said the board is currently considering the proposal and obtaining advice from financial and legal advisers.

The proposal is subject to a number of conditions, including “due diligence, organising necessary financing for the transaction, no material asset sales, divestments or similar transactions” as well as Foreign Investment Review Board approval and the ACT Board and a unanimous recommendation by the Caltex Board.

On Monday, Caltex announced its intention to undertake an initial public offering (IPO) of up to a 49 per cent interest in 250 core Convenience Retail freehold sites in a bid to maximisie shareholder value.

The retailer also recently opened its first Caltex Woolworths Metro store in North Ryde with more stores to be rolled out in the coming months.

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