Caltex have rejected a takeover bid from EG Group.
The UK based group submitted a split bid last month of $3.9 billion in cash for the convenience business and $15.62 in cash and securities for shareholders for the fuel and infrastructure business, including trading and shipping.
However in a statement to shareholders this morning, Caltex stated that after careful consideration and following financial and legal advice and feedback from shareholders, they concluded the bid “undervalues the company and does not represent compelling value for Caltex’s shareholders.”
Caltex stated they have offered to engage further with EG regarding any future improved proposals.
They are also currently considering a bid from rival Couche-Tard (ATD) worth $8.8 billion, after the Canadian giant came back with a third and final offer last month.
Caltex knocked back ATD’s initial offers, before granting the company access to non-public information.