Alimentation Couche-Tard Inc. continues to pursue an agreement to acquire Caltex Australia Ltd.
The Quebec-based company made its first move for Australia’s largest service station operator when it submitted an unsolicited A$32.00-per-share bid for Caltex in October. It followed that with a revised offer for A$34.50 in November after Caltex rejected the first offer as inadequate.
Caltex is a transport fuel supplier with a network of approximately 2,000 company-owned or affiliated sites across Australia.
Caltex’s board of directors also concluded that Couche-Tard’s second proposal undervalued the company and did not represent compelling value for Caltex’s shareholders. However, the board offered to provide Couche-Tard with selected non-public information to allow it to formulate a revised proposal.
As a result, Couche-Tard submitted a new offer to pay a cash price of A$35.25, or U.S. $23.73, per ordinary share. The retailer made the revised proposal on Feb. 12, as previously reported.
Five weeks later, that offer is still on the table.
“While it does not guarantee an agreement will be reached or transaction will be concluded, we are now actively engaged in due diligence to work with Caltex,” Couche-Tard President and CEO Brian Hannasch said during the company’s third-quarter fiscal year 2020 earnings call, held March 18.
“As we said before, Couche-Tard is focused on strategically developing our Asia Pacific presence to drive continued growth in that region in the future,” he added.
Laval-based Couche-Tard has nearly 15,000 sites across 26 countries and regions. Its global brand is Circle K.