Lab testing services provider PearlStreet (ASX:PST) has rejected Campbell Brothers’ (ASX:CPB) $86 million takeover bid in favour of a recapitulation proposal.
The company’s board told the ASX they considered a proposal from Catalyst Investment Managers to invest $23 million in PearlStreet via a recapitalization scheme to be a superior offer for shareholders.
Under the proposal, Catalyst will acquire at least 46% of PearlStreet, or 45 million shares. Shareholders will be entitled to sell up to 36% of their share holdings for 50 cents per share. Campbell’s offer was to acquire every share for 56 cents per share.
“Based on the view it has taken to date, the board has unanimously resolved not to recommend Campbell Brothers’ proposed offer,” chairman David Eiszele said.