Redflex may receive higher than $2.50 takeover bid
- 22 October, 2010 17:06
The red light photo 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% 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.