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Bidding war for Caltex ramps up

The bidding war for Caltex is gaining steam, with UK based EG Group submitting a long-anticipated bid for the company.
It comes just days after Caltex announced they had granted EG’s Canadian rival Couche-Tard due diligence following their third and final $8.8 billion bid for the company.

EG’s bid is split as $3.9 billion in cash to acquire Caltex’s convenience business and $15,62 in cash and securities for shareholders for the fuel and infrastructure businesses, including international trading and shipping.

As part of the proposal, Caltex would continue to pay dividends to shareholders until the transaction was finalised.

A ‘fully franked’ special divident would also be paid to shareholders for the balance of Caltex’s franking credits, according to their submission to the ASX yesterday.

The statement also noted EG would consider acquiring a 10 per cent share in Ampol for additional cash.

The bid is subject to numerous conditions, including gaining approval from the Australia Competition and Consumer Commission (ACCC).

Caltex are understood to be weighing up its options, including Couche-Tard’s bid for $35.25 per share.

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