TERRY White Group (TWG) has recommended that its shareholders accept a $50 million proposal from EBOS to take 100% control of the company (PD breaking news).
EBOS currently holds just over 50% of TWG and aims to acquire the remainder by way of a Scheme of Arrangement, with the transaction said to "enable Terry White Group and the TerryWhite Chemmart pharmacy network to achieve the scale and strength required to fulfil its potential to become Australia's favourite pharmacy brand".
An Extraordinary General Meeting is set to take place in Dec 2018 at which TWG shareholders will vote on the proposal, which is being unanimously recommended by the company's directors.
EBOS said it recognised the importance of maintaining the confidence of TerryWhite Chemmart pharmacies in the leadership of TWG, with no intention of making any senior executive changes that would negatively impact the business.
The company said it intended to retain the recently established TerryWhite Chemmart Advisory Group, and to keep existing retail and wholesale agreements in place.
EBOS is offering $3.55 per share, representing a significant premium for TWG shareholders who bought in at the initial capital raising price of $1.50 per share.
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