Masthead increases offer for Vertex to $2.05/share

Masthead said today it was increasing its takeover offer for Vertex to $2.05 per share from its $1.90/share offer made on March 12.

The offer for various share options held by senior management in the plastic manufactuer has also been increased by 15c per option.

Masterhead is the investment vehicle of the Stewart family of Christchurch, which which used to control formally listed plastices company PDL and now controls another plastics manufacter Alto Plastics which it plans to merge with Vertex.

Vertex shares were up 16c to $2.01 in immediate reaction to the higher offer.

The new offer, which now values at $65.6 million, is conditional on Masthead gaining 50 per cent control. It already controls at least 21 per cent of the company. It closes on May 17.

Shareholders have been holding back, initially on hopes that another bidder would emerge but also on hopes of a higher offer closer to the independent valuation of the company. A counter-bidder, speculated to be Australia's Visy, from an unnamed party pulled out of the running after Easter.

In relation to the earlier, lower offer, Vertex independent directors recommended shareholders did not accept the bid, which fells below the $2.14 and $2.39 price range given by independent valuers Grant Samuel.

Masthead paid George Gould $2.05 a share last September for its initial 19.9 per cent stake in Vertex.

- NZPA