The board of Clearview Wealth has rejected a $220-million takeover offer from a Crescent Capital Management entity, citing an inadequate offer price of 50 cents per share.
"The offer does not reflect the strong uplift in the business from Clearview's new products, services and enhanced distribution," the board said in a statement to the Australian Securities Exchange (ASX) today.
"The company's major shareholder, Guinness Peat Group, which holds 47.8 per cent of Clearview's issued capital, has said that 'the price offered represents a substantial discount to the fair value of Clearview and is wholly inadequate'.
"Overall, the offer is opportunistic and the timing seems designed to take advantage of uncertain and volatile investment markets."
Late last week, the Clearview board advised its shareholders not to take action in response to Crescent Capital Partner Management's $220-million takeover bid for the group until it had completed a full assessment of the offer.
"Further information will be provided to the market and shareholders once the board has completed a careful assessment of the offer," Clearview chairman Ray Kellerman said in a statement to the ASX.
"At this stage we are advising shareholders to take no action in respect of their shares in Clearview."
Last Wednesday, Crescent Capital informed the market of its intention to make an all-cash offer to purchase the ordinary shares in Clearview at a price of 50 cents per share.
At the time, Crescent Capital managing partner Michael Alscher said the offer provided Clearview shareholders with the opportunity to sell some or all of their holdings "at a premium in a company that has low historical trading volumes and liquidity".
