News: Redflex shares jump on Macquarie takeover

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Yesterday shares in Redflex Holdings Ltd (ASX:RDF) jumped over 15 per cent following news Macquarie Group Ltd (ASX:MQG) and the Carlyle Group have agreed to buy the traffic light company for $304 million.



Investment bank Macquarie and private equity giant Carlyle have inked a deal with Reflex to acquire all the ordinary shares in the company for $2.70 per share, a 20.5 per cent premium to its last traded price at the end of last week. 



Though the deal is still subject to shareholder and regulatory approval, The Redflex board has unanimously recommended shareholders vote in favour of the scheme of arrangement



Redflex manufactures and operates highway safety equipment and Carlyle managing director Brooke Coburn says the company offers significant global growth opportunities, particularly in regions where there is a growing appreciation for the safety that red-light cameras provide.



After the news broke, shares in Redflex Holdings climbed 15.62 per cent to close at almost a six month high of $2.59 on Monday. Shares in Macquarie Group fell 1.35 per cent to close at $38.80.



In the 2010 financial year Redflex Holdings reported a net profit of $715,000.