they knocked one back last year at 60c the did the cap raising...

they knocked one back last year at 60c the did the cap raising later at 30c.



Boom Logistics rejects McAleese Investments buyout bid

* CITY BEAT: Michael Bennet
* From: The Australian
* November 19, 2009 10:54AM

BOOM Logistics clearly does not like surprises, rejecting McAleese Investments' $102 million cash offer for the company as it seeks up to $87m to reduce debt and de-leverage its balance sheet.

The crane company late yesterday said it received the offer to acquire all its shares at 60 cents on Tuesday, when it was in a trading halt, but believed the offer was too conditional and incomplete, compared to the certainty of its underwritten raising.

Royal Bank of Scotland is the white knight underwriting the offer, but only up to $67m, comprising the $52m one-for-one entitlement offer and $15m institutional placement. The remaining $20m from a share-purchase plan will have to go it alone, but we hear the underwritten offer is significantly oversubscribed.

McAleese's play is its second in months following its merger proposal in July which involved McAleese vending its parent The Harbrew Group into Boom, which would have taken its holding to 59 per cent from about 12 per cent.

Boom scoffed at the thought of paying to lose control of their business.

McAleese's new offer represents an 8 per cent premium to Booms three-month VWAP of 56c. But Boom claims its a discount to its net tangible asset value of 89c as at June 30.

The institutional entitlement offer and placement is expected to be completed today by RBS, with Lazard looking on as Booms adviser.

Boom shares are expected to come out of the trade halt tomorrow as the retail offer opens, which may give some indication of what shareholders make of the bid.

All shares are to be issued at 30c, representing about a 36 per cent discount to Booms closing price of 47c on Monday.