Greencross share price rises after receiving court approval for the takeover

The Greencross Limited (ASX:GXL) share price is up after receiving court approval for the takeover.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Greencross Limited (ASX: GXL) share price is up more than 1% after the Federal Court of Australia approved the convening of a meeting of Greencross shareholders to vote on the takeover.

Private equity firm TPG has bid $5.55 cash per Greencross share to take over the company. Independent expert Grant Thornton Corporate Finance has concluded the offer price is fair and reasonable, and is therefore in the best interests of shareholders in the absence of a superior offer.

Grant Thornton said that the full underlying value of Greencross is between $5.05 and $5.67 per share, meaning that the potential cash payment of $5.55 per share is within the top quartile of this range.

Shareholders will meet on Wednesday, 6 February 2019 to decide whether to vote for the takeover to go ahead or not. If that's approved the takeover scheme will be implemented on 27 February 2019 with the special dividend date set at 20 February 2019.

If the takeover goes ahead there one will be one less veterinary business on the ASX, two of the remaining players are National Veterinary Care Ltd (ASX: NVL)

Greencross shareholders will need to decide if they want to re-invest their money back into other ASX shares.

Motley Fool contributor Tristan Harrison owns shares of Apiam Animal Health Ltd and NATVETCARE FPO. The Motley Fool Australia owns shares of NATVETCARE FPO. The Motley Fool Australia has recommended Greencross Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a lucrative return to trading for investors this Tuesday.

Read more »

Business man at desk looking out window with his arms behind his head at a view of the city and stock trends overlay.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Warren Buffett
Share Market News

$10,000 invested in Berkshire Hathaway shares 5 years ago is now worth…

The past 5 years have been especially fruitful for Berkshire Hathaway investors.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Coronado Global, Genesis Minerals, Monash IVF, and Platinum shares are sinking today

These shares are starting the week in the red. But why?

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Mergers & Acquisitions

Johns Lyng Group shares enter trading halt. Is it a takeover target?

This ASX 200 stock looks ripe for a takeover.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Austal, Botanix, DroneShield, and NextDC shares are storming higher today

These shares are starting the week with a bang. But why?

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Share Gainers

The Coronado Global share price just surged to a 114% weekly gain. Here's why

Investors have sent the ASX coal stock flying higher in June. But why?

Read more »

Two brokers pointing and analysing a share price.
Share Market News

Here are the ASX 20, ASX 50, ASX 100, and ASX 200 shares being added and kicked out of their indices

Let's see what changes are being made at this month's quarterly rebalance.

Read more »