AAPT welcomes takeover offer

By RICHARD BRADDELL

Telecom's $A7.25 ($9.33) a share bid for the minorities in AAPT received a warmer welcome from AAPT's independent directors than its $A5.10 a share offer last October.

That gave it 82 per cent of the company.

According to AAPT's directors, and independent adviser Grant Samuel, that bid undervalued the company.

But this time round, AAPT chairman Lee Casey said the independent directors welcomed the proposed offer.

The independent directors regarded the proposed offer as attractive.

At $A7.25 a share, the offer is 23.5 per cent above the weighted average price for AAPT shares in the three preceding months.

And it is 42 per cent higher than the October bid.

Nevertheless, it is below the peak price of $A10.90 in March this year.

Although another report from Grant Samuel has yet to be presented to shareholders, most likely in early September, AAPT's independent directors have indicated they will accept the offer for their own shares.

Telecom took a 9.9 per cent stake in AAPT in May last year.

But while it made it clear it would be happy with less than 50 per cent of the company, a rash of acceptances took it to 82 per cent last October.

That holding has since diluted to 80 per cent, with the exercise of executive share options.