According to Moneyweb, fast track contracting business Protech Khuthele Holdings received an unsolicited offer from equipment business Eqstra, which currently owns a 32.8% stake in the company.
The offer was for 60c apiece, Protech is currently trading at 53c up 23% from Tuesday's close. In response Protech set up an independent board, consisting of three independent non-executive directors to consider the offer.
"The board of Protech was not alerted to the content of the Firm Intention Letter prior to its delivery," Protech said in a statement. "The Firm Intention Letter demanded a response (by Wednesday, 5 December 2012), only three business days after its delivery." No explanation or reasons for the urgency were provided, but the Letter states that "if Protech does not respond, within the short time period, that it will support the proposed transaction, Eqstra will proceed with a hostile offer."
The Independent Board advised Eqstra that until it has had enough time to consider its offer, it cannot accede to Eqstra's request to conduct an accounting, legal and tax due diligence, Moneyweb reports.
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