CCP BidCo buys half of ClearView
CCP BidCo has increased its stake in ClearView Wealth from 12.31 per cent to 59.5 per cent after increasing its bid offer from $0.50 per share to $0.55 per share.
This follows ClearView's largest shareholder, GPG, accepting the increased offer, meaning control of the company now passes to CCP BidCo, ClearView said in a statement to the Australian Securities Exchange.
ClearView's non-conflicted directors (those that do not own shares in entities associated with CCP BidCo) are still of the view that the upgraded offer does not represent fair value to shareholders, according to the statement.
However the directors said shareholders might wish to accept the offer, as trading in ClearView shares might become less liquid if the CCP BidCo offer is successful, and the offer represented the best terms likely to be available in the current circumstances.
Shareholders may continue to reject the offer, as ClearView is in the early stages of a growth strategy and they may be giving up potential value.
The offer also remains below the embedded value of $0.64 per share and the expert valuation range of $0.68 to $0.74 per share, the directors said.
However the current offer does represent a premium to ClearView's most recent closing price and it is possible that the price will fall further, the directors noted.
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