coates-hire-rejects-private-equity-bid

Coates Hire rejects private equity bid

Carlyle and National Hire submit a bid for Coates Hire of Australia, valuing the business at $1.3 billion, but the bid is rejected as too low.
Coates Hire of Australia has formally rejected a buyout offer which values the equipment rental business at A$1.58 billion $1.3 billion.

A consortium comprising private equity firm The Carlyle Group and National Hire offered to buy the business for A$6.29 per share, excluding dividends. Including the A$0.11 dividend that Coates has declared, the offer is worth A$6.40 per share. The offer values Coates at A$1.58 billion.

Coates was quick to respond to the offer, describing it as ôhighly conditionalö and dismissing it on grounds that it ôcontinues to undervalue the Coates operations and continues to discount the benefit of substantial synergiesö.

Coates also said that the bid, which is believed to be the consortium's...
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