Danks is pleased to announce that Carboxy Pty Ltd, a joint venture between Woolworths and Lowe’s have declared their offer for Danks Holdings Limited (“Danks”) unconditional.
As of today, Carboxy has received acceptances from Danks shareholders totalling 96.2% of the ordinary issued shares.
The offer will close on 19 November 2009 at 7:00pm Sydney time.
Those shareholders who have already accepted the offer or accept before the bid closes will be paid by 10th December 2009 (within 21 days of 19 November 2009).
Following the closure of the offer, Carboxy will move to compulsory acquisition of the outstanding shares it does not own.
The Board of Danks had unanimously recommended that Danks shareholders accept the offer from Woolworths and Lowe’s and note that over 96% of shareholders had accepted the offer prior to it being declared unconditional on the 11th November 2009.
To all our shareholders, employees, customers and suppliers: We are very pleased with the final outcome of the bid from Woolworths and Lowes. Now that the offer has become unconditional Woolworths and Lowes will, within 21 days of the bid closing (19 November 2009) pay those shareholders who have accepted the offer and move to compulsorily acquire the other remaining shares.
For shareholders the offer has enabled them to realise their investment for cash at a significant premium to the market price before announcement of the takeover bid.
For our retail customers and employees, we believe this marks the start of an exciting new era for Danks, building on 150 years of history and providing a strong platform for the next phase of growth.
As a leading hardware distributor in Australia, we believe Danks will have enhanced capability to support and grow independent retailers who will continue to be the lifeblood of our business.
Woolworths intends to support the Danks name and the retail brands Home Timber & Hardware, Thrifty Link Hardware and Plants Plus Garden Centres. We believe that partnering with Woolworths and Lowe’s will provide Danks customers with the benefit of added resources, industry expertise, buying efficiencies, global sourcing and supply chain benefits.
Woolworths has indicated that it will retain Danks staff and management and continue to use their expertise to further grow and develop the business. Woolworths has also indicated that Danks employees will have access to additional employee benefits and improved training and career development opportunities.
On behalf of the Danks Board I thank our shareholders for their loyal support, and I look forward to continuing to the journey with our customers and staff as we move into this next exciting phase of development.
Graeme DanksManaging Director