Gerard recommends Champ takeover offer

Australian-listed lighting company Gerard Lighting Group has entered into a scheme implementation agreement (SIA) with Champ Private Equity-owned Lighting Group Australia for a cash offer at $1.05 per share. The offer values the company at around $186 m.

Champ Managing Director John Haddock said, “The Gerard Lighting Group is a market leader with strong growth prospects, led by a committed executive group and, as such, is the type of company in which Champ likes to invest. We look forward to working with Simon Gerard and his team.”

“The independent directors believe that the LGA proposal of $1.05 per share represents an excellent opportunity for Gerard Lighting shareholders to realise value and secure an attractive premium. The independent directors’ recommendation is supported by the other directors and the proposal has the support of the major shareholders associated with the Gerard family,” said Gerard Lighting Deputy Chairman and Independent Director Rick Allert.

Champ’s offer represents a 52% premium to Gerard Lighting’s volume-weighted average share price (VWAP) of $0.69 in the one month up to and including 13 July 2012, and a 49% premium to the company’s VWAP of $0.71 in the three months up to and including 13 July 2012.