Redflex gets raised takeover bid

Redflex gets raised takeover bid

Traffic camera technology company Redflex (ASX:RDF) said the takeover bid it has received has been raised to $2.75 per share and modified to reflect the surging Australian dollar.

Macquarie Capital and the Carlyle Group have agreed to raise their joint bid and to mostly remove the variance on price based on the AUD/USD exchange rate.

The original offer was for $2.70 per share, but the price paid would have been lower if the Australian dollar was trading significantly higher against the Greenback.

Disclosing the new offer on Friday, Redflex said that under the original terms, if the deal had been executed the day before the price per share would have fallen to $2.57.

The offer price will increase to $2.76 in the event the Australian dollar falls below US$0.96, and again to $2.81 if it falls below US$0.94.

Redflex said the new deal is at least a 79% premium in Australian dollar terms to Redflex's closing price of $1.535 on June 4, 2010 – one trading day before the market began speculating about Macquarie's initial offer.

The Redflex board has unanimously approved the new offer, and had backed the prior offer when it was made in February.

Redflex plans to hold the shareholder meeting to vote on the proposal on Monday.

RDF shares grew 6.02% in Friday's trading to $2.640.

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Tags Mergers and acquisitionsAustralian dollarMacquarie CapitalredflexASX:RDF

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