After last week receiving an unsolicited takeover offer, the board of health and skincare business McPherson’s has urged shareholders to take no action, stating the offer is materially inadequate and opportunistic.
The offer, handed down by minority shareholder Gallin, was also described as “hostile” by the board.
“Gallin’s takeover offer is highly opportunistic as it takes advantage of McPherson’s currently lower share price which is not reflecting the true value of the business,” chairman of the board Graham Cubbin wrote in a statement to shareholders.
“The offer represents a premium of only 9.8 per cent on the closing price on the day prior to the offer, a 4.1 premium to the 3-month volume weighted average price and a discount to the volume weighted average price over a 6 to 12 month period.
“In the boards view, this is significantly below that which should apply to obtain control of the company.”
Cubbin also took the opportunity to announce the business has appointed interim CEO Grant Peck permanently in the position.
Last week, Gallin director Nick Perkins said the healthcare business had “lost its way”, is in urgent need of reinvigoration, and has disappointed shareholders for some time.
Following the offer, McPherson’s shares jumped 13 per cent to $1.39 per share, and jumped further following the board’s announcement on Thursday to $1.43 per share.