AUS
NZ
UK
CA
USA
IND
_06_16_2026_05_20_09_929099.jpg)
Directors of Yellow Brick Road Holdings Limited remain still on their decision to reject the takeover bid offer given by Mercantile OFM Pty Ltd, a wholly-owned subsidiary of Mercantile Investment Company Ltd.
On 20 August 2018, Mercantile OFM Pty Ltd placed an off-market takeover bid to acquire 100% of ordinary shares in Yellow Brick at an offer price of $0.094 in cash. The offer price was reflecting a discount of 3.2%. But on the same date Yellow Brick released their response to take no action in relation to the acquisition bid offered by Ron Brierly's Mercantile Investment Company.
Following their immediate response to the bid, today the company released Directorsâ unanimous recommendation on the bid, advising shareholders to ârejectâ Mercantileâs offer. [optin-monster-shortcode id="wxhmli4jjedneglg1trq"]
In justification to their recommendation, Directors quote that âthe offer is grossly inadequateâ. The takeover price offered by Mercantile is viewed to harm the full value of YBR as YBRâs share price has always traded higher than the offer price plated by Mercantile.
The recommendation reads that takeover bid would rob of YBRâs shareholders interest of the full strategic value of their investment and therefore they should not accept the takeover offer.
Furthermore, the Directors warned the shareholders that if they accept this offer, they may loose the right to participate in any subsequent better offer, if received.
Subsequent to this update, Yellow Brickâs stock surged by 5% to $0.105 on 4 September 2018 (3:28 PM AEST). The stock has recorded performance change of -25.93% over the past one year.
The Board of Directors have also recommended the shareholders to take no action and ignore all the communication they receive in relation to this bid.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a companyâs prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkineâs team of analysts bought you handpicked report for âTop 25 Dividend Stocks For 2018.â
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
