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Rifa offer for Airwork near top of range

NZ Newswire logoNZ Newswire 21/12/2016 Sophie Boot

Zhejiang Rifa Holding Group's partial takeover offer for Airwork Holdings is near the top of independent adviser Grant Samuel's assessed value range for the shares.

Earlier this month, the Chinese group set out its bid for the partial takeover, telling shareholders it would seek to grow Airwork's presence in emerging markets such as in Asia and Latin America.

It has offered to buy up to 75 per cent of the shares at $5.40, valuing the target company at $271 million.

The Grant Samuel report, prepared by independent chairman Mike Daniel and independent director Rob Flannagan, assesses the full underlying value of the shares between $4.79 and $5.56.

The offer reflects a 22 per cent premium on the pre-offer share price of $4.42, consistent with the premiums for control generally seen in successful takeovers of other listed companies, the report said.

Rifa entered a takeover lock-up deed with major shareholders including non-executive director Hugh Jones and Condor Holdings for $5.40 per share as of October.

Airwork shares recently traded at $4.85, having gained 26 per cent this year and 9.7 per cent since the Rifa offer was made.

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