Australia's National Hire Group likely to delist

Seven Group Holdings (SGH), the business owned by Kerry Stokes that has a 66% shareholding in National Hire Group - which owns 47% of Coates Hire - has made a A$3.00-3.60 per share offer to acquire the rest of National Hire and then de-list the company from the Australian stock exchange.

The initial offering of A$3.00 per share - which represents a 60% premium on the share price on 16 September before the offer was made - will rise to A$3.60 if SGH acquires more than 75% of National Hire's shares.

Coates Hire is jointly owned by National Hire and private equity group Carlyle.

National Hire has formed an independent board committee of directors not associated with Seven, comprising Stephen Donnelley (chairman), Clive Isenberg and Dale Elphinstone, has been formed to respond to the Seven takeover offer.

"We believe National Hire shares have been significantly undervalued by the share market" said Mr Donnelley. "National Hire shareholders will have plenty of time to consider this proposal. As such, National Hire shareholders are advised to take no action in relation to the Seven takeover offer until National Hire issues its target's statement containing a formal recommendation in relation to the Seven takeover offer."

Peter Gammell, managing director and group chief executive officer of SGH, said in a letter to National Hire's shareholders that National Hire's stock exchange listing was expensive to maintain and was not providing benefits in terms of stakeholder liquidity that it had hoped for.

As well as owning ia share of Coates Hire National Hire Group owns Allight Promax, the pump, power and portable lighting business, and is a dealer in Australia for FG Wilson.