Redflex gets raised takeover bid

Macquarie Capital and the Carlyle Group have raised their joint bid for traffic camera company Redflex (ASX:RDF) and modified terms that would have lowered the offer due to the strong AUD

Traffic camera technology company, Redflex (ASX:RDF), said the takeover bid it has received has been raised to a minimum of $2.75 per share and modified to reflect the surging Australian dollar.

Macquarie Capital and the Carlyle Group have agreed to raise their joint bid and to mostly remove the variance on price based on the AUD/USD exchange rate.

The earlier offer was for $2.70 per share, but the price paid would have been lower if the Australian dollar was trading significantly higher against the Greenback.

Disclosing the new offer on Friday, Redflex said that under the original terms, if the deal had been executed the day before the price per share would have fallen to $2.57.

The offer price will increase to $2.76 per share in the event the Australian dollar falls below $US0.96, and again to $2.81 if it falls below $US0.94.

Redflex said the new deal is at least a 79 per cent premium in Australian dollar terms to Redflex's closing price of $1.535 on June 4, 2010 – one trading day before the market began speculating about Macquarie's initial offer.

The Redflex board has unanimously approved the new offer, and had backed the prior offer when it was made in February.

Redflex plans to hold the shareholder meeting to vote on the proposal on Monday.

RDF shares grew 6.02 per cent in Friday's trading to $2.640.

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Tags businessMacquarie Capitalredflextakeover bidCarlyle Group

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