Australian Collection Giant Baycorp Rejects Takeover Bid

Baycorp Advantage Ltd has recommended shareholders reject listed investment firm Allco Equity Partners Ltd (AEP) hostile takeover bid, labelling it “materially inadequate”.

The credit information provider said in its target’s statement that the $3.50 per share proportional takeover offer was significantly lower than the valuation it received from independent expert Lonergan Edwards & Associates.

The firm priced Baycorp shares at between $3.92 and $4.31 and said the AEP offer was “neither fair nor reasonable”.

Baycorp Advantage chairman Glenn Barnes said the firm’s independent directors believe shareholders interests are best served by the current management team.

“Following the recently completed strategic and operational review, Baycorp Advantage has clear plans and initiatives in place to drive future growth,” he said.

Baycorp Advantage said it would offload its struggling debt recovery division – a strategy that AEP has also flagged – and return $150 million in capital to shareholders, at its annual results earlier this month.

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