NHR shares grew by two thirds in Tuesday's trading after the takeover offer was made, closing at $3.140.
Seven Group, which already owns a 66.2% stake in National Hire, said it was making the offer due to the low liquidity of NHR shares on the ASX.
The company made an unconditional off-market bid for NHR shares at $3 per share, but has indicated it prefers to acquire all of National Hire – if Seven receives at least 75% acceptances, it will proceed to compulsory acquisition and raise the purchase price to $3.60 per share.
Seven will propose to delist National Hire following the purchase period, and said it wants to give other shareholders a chance to exit their investment at a premium.
The $3.60 bid would be a 124% premium to the weighted average NHR trading price for the three months leading up to last Friday.
National Hire on Tuesday announced that an independent committee consisting of directors unaffiliated with Seven has been formed evaluate the takeover offer.
But chairman Stephen Donnelley, a member of the committee, said he believed that “National Hire shares have been significantly undervalued by the share market.”
No deadline has yet been set for National Hire shareholders to accept the offer. Seven Group owns its holding in the company through subsidiary WesTrac.
SVW shares fell 2.22% on Tuesday to $8.350.