Packer group in A$1 billion financial services bid
(Australia) - Kerry Packer's investment company Consolidated Press Holdings Investment Corp (CPH) has announced a takeover bid for Packer's financial services interest, Challenger International, in a move which could create a new A$1 billion player in the financial industry.
CPH, now headed by former Colonial First State chief Chris Cuffe, owns 19 percent of Challenger and around 30 percent of CPH.
CPH offered 4.5 units for each share in Challenger, valuing the finance group at A$592 million, or A$2.03 per share, based on CPH's closing price after the deal was announced Monday.
Challenger shares, which have lost almost half their value in the past year, leapt 15 percent to A$1.97 on the news in a slightly firmer overall market. CPH stock gained 7.1 percent to a 12-month high of $0.45 each, giving the combined group a market capitalisation of almost A$1 billion.
CPH offered 4.5 units for each share in Challenger, valuing the finance group at A$592 million, or A$2.03 per share, based on CPH's closing price after the deal was announced Monday.
Challenger shares, which have lost almost half their value in the past year, leapt 15 percent to A$1.97 on the news in a slightly firmer overall market. CPH stock gained 7.1 percent to a 12-month high of $0.45 each, giving the combined group a market capitalisation of almost A$1 billion.
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