The board of mortgage and wealth company, Yellow Brick Road Wealth Management (YBR) appears set to recommend rejection of an unsolicited off-market takeover bid by a wholly-owned subsidiary of Sir Ron Brierley’s Mercantile Investment Company.
YBR announced to the Australian Securities Exchange (ASX) late yesterday that it had received the bidder’s statement relating to the offer to acquire all the ordinary shares in YBR at a price of $0.09 in cash.
The ASX announcement said the takeover bid was unsolicited and in the view of the Board “it materially undervalues the existing and future value of the company and is opportunistic in its nature, timing and pricing”.
It said that a fully considered recommendation by the Board, along with the company’s target statement, would be provided to shareholders in due course.
“In the meantime, the YBR Directors advise YBR shareholders not to take any action whatsoever regarding their YBR shares in response to the takeover bid,” the ASX statement said.
