March 1, 2020 / 10:30 PM / a month ago

Caltex Australia says EG Group offer undervalues co, but open to talks

(Reuters) - Caltex Australia Ltd (CTX.AX) said on Monday that the A$3.9 billion-plus ($2.61 billion) proposal from Britain’s EG Group undervalued the company but that it was open to more talks for a potential transaction.

EG Group made the offer last month, including A$3.9 billion in cash and separate shares in a new, listed infrastructure and refinery company made up of Caltex’s remaining assets.

The offer came just days after Canada’s Alimentation Couche-Tard Inc’s (ATDb.TO) twice-improved A$8.80 billion bid.

Last Tuesday, Caltex Australia named Chief Financial Officer Matthew Halliday an interim chief executive - as it evaluates the two proposals.

The takeover tussle comes as Caltex works to boost margins from its refining business and its fuel and convenience store businesses, while planning a public listing of a property trust with around 250 of its petrol station sites.

EG Group was not immediately available for comment outside office hours.

Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Peter Cooney

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