ST Engineering buyout bid fails as Cubic opts for rival proposal
SINGAPORE Technologies Engineering's (ST Engineering) proposed buyout of New York-listed defence and transport technology firm Cubic Corporation has fallen through, with Cubic instead accepting a proposal from Veritas Capital and Evergreen Coast Capital Corporation.
On Wednesday, Cubic announced its acceptance of Veritas and Evergreen's proposal to raise their offer for the pending acquisition of Cubic to US$75 per share in cash. The company has entered into an amendment to its previously-announced definitive agreement with affiliates of Veritas, for the acquisition.
The all-cash transaction is valued at about US$3 billion, including the assumption of debt.
On Tuesday, ST Engineering had raised its offer to US$78 per share, up from US$76 previously. In its Wednesday statement, Cubic said its Board "gave due consideration" to the revised proposal from ST Engineering.
"The Board determined that, based on the superior certainty and anticipated timing of closing the existing transaction with Veritas and Evergreen, the revised proposal from Veritas and Evergreen was in the best interests of all Cubic's shareholders," it said.
The Board recommends that the company's shareholders adopt the amended agreement. Cubic "has ceased engagement with ST Engineering in accordance with the terms of the amended agreement".
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ST Engineering shares closed down S$0.01 or 0.26 per cent at S$3.89 on Wednesday.
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