The Caltex board is considering the $34.50 per share cash offer after rejecting an earlier bid of $32 per share as inadequate.
“The discussions between Caltex and ACT are at a preliminary stage, the proposal is highly conditional and there is no certainty that these discussions will result in a transaction,” Caltex said on Tuesday.
The offer is subject to a number of conditions including due diligence, obtaining financing, Foreign Investment Review Board approval and a unanimous recommendation by the Caltex board.
Toronto Stock Exchange-listed Couche-Tard operates over 15,000 convenience stores in North America and Europe, mostly under the Circle K brand.
Caltex said its announcement on Monday that it was planning to spin off a 49 per cent interest in its 250 freehold sites into a listed property trust was not related to the Couche-Tard’s proposal.
“The announcement of Caltex’s intention to undertake an IPO follows significant work Caltex has undertaken over the last 18 months to release value to its shareholders from its property portfolio and builds upon the network review announced in August,” Caltex said.
Caltex said UBS and Grant Samuel have been appointed financial advisers and Herbert Smith Freehills as a legal adviser to Caltex.
Caltex shares surged on the announcement and were 11.9 per cent higher at $33.34 by 1118 AEDT.
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