cimic logo stone hill gateway to devine property
Stonehill is one of Devine Limited’s Victorian projects. Image – Medianet, Devine Limited.
  • Offer price for Devine (ASX: DVN) is 24 cents per share
  • Until yesterday, this doubled the previous trading price of DVN
  • Offer is a discount on DVN NTA, which is 41 cents

Devine Limited (ASX: DVN) announced that it has received a takeover offer from CIMIC yesterday. CIMIC Group (ASX: CIM) said that through CIMIC Residential Investments Pty Limited (CRI) the company:

“intends to make an offer to acquire all of the shares in Devine that it does not already own pursuant to an off‐market takeover at a price of $0.24 cash per share.”

CIMIC Group Limited

CIMIC is one of Australia’s largest construction companies, and currently owns 59.11% of Devine.

History

The construction heavyweight had previously attempted to take over Devine back in 2015.

That 2015 offer was for 75 cents per share. Devine was then trading around 60 cents.

The Australian Financial Review (AFR) reported that the 2015 takeover attempt saw CIMIC’s share of Devine increase from 50% to 59.11% when some shareholders accepted the takeover offer. Others clearly did not.

The AFR also reported the lack of success stemmed from frustration that arose after CIMIC “knocked back previous offers for Devine priced as high as 90¢ per share.”

The current offer

Made at 24 cents, the offer is a premium that effectively doubled previous trading prices which were floating around 12 cents, with a high at 19 cents in January before sharply dropping back down again.

The offer represents no premium to the current trading price, as Devine shares jumped to 24 cents and peaked at 25 cents following the takeover announcement. The company continues to trade at around 24 cents.

devine limited takeover share price jump
Image – Google.

CIMIC also said:

“the Offer enables investors to exit all of their shareholding in Devine in an orderly manner and without the need to pay brokerage fees and with the opportunity to receive a cash price of $0.24 per share.”

CIMIC Group Limited

The Devine response

In CIMIC’s 2015 takeover bid, Devine recommended shareholders accept the takeover offer.

That advice was clearly not taken by shareholders in 2015.

Yesterday, it was noted the second bid by CIMIC is yet to be evaluated, and so no action was required.

Today, in the Chairman’s address to shareholders at the Devine annual general meeting, David Robinson, said PwC has been appointed to prepare the independent expert’s report, as well as legal and financial advisors.

Mr Robinson also noted that:

“The proposed cash offer of 24 cents per Devine share is at a premium to the price at which Devine’s shares have recently traded but at a discount to Devine’s NTA, which was $0.41c at Devine’s most recent reporting date of 31 December 2020.”

David Robinson, Chairman, Devine

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