Redflex may receive higher than $2.50 takeover bid

Redflex may receive higher than $2.50 takeover bid

Shares in Redflex Holdings (ASX:RDF) shot up to $2.55 as it revealed it had received non-binding takeover offers from several parties

Shares in Redflex Holdings (ASX:RDF) have jumped 6.4 per cent since the company revealed it may receive a takeover bid higher than the $2.50 per share informally offered by a Macquarie Group.

The red light camera enforcement technology company said in a statement that it had received indicative offers from “a number of credible parties” for over $2.50 per share.

Redflex has entered discussions with a short list of these parties, including due diligence proceedings.

But the offers made are so far non-binding, and there can be no assurance that any of the talks will result in a formal proposal, the statement read.

Even the Macquarie Group unit's offer, made in August, was non-binding. Redflex had advised shareholders to take no action on the proposal.

From an opening price of $2.36, RDF shares closed the day's trading 8.5 per cent higher at $2.55.

Redflex's range of point-to-point cameras on the Hume Highway was taken offline this week after it was revealed they had incorrectly reported traffic infringements on nine occasions.

The problem occurred as a result of cameras briefly falling out of synch with each other, and while Redflex has devised a solution the devices will need to be thoroughly tested until police are willing to turn them back on.

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