Godfreys Mulls Co-Founder’s Takeover Offer, Shares Soar 40%
Set to be a possible lifeline for the struggling retailer, Godfreys management is reportedly considering a 32c-a-share takeover bid from 99-year old Co-Founder John Johnston – news which sent company shares soaring by 40% yesterday.
The news follows Godfreys recent earnings report, which posted a 62% profit decline. As previously reported, the specialist vacuum retailer has embarked on a three-year turnaround strategy, and has recently expanded its leadership team.
Mr Johnston’s bid will enable him to delist from the ASX, however, company Directors have urged shareholders to not take action in the immediate future.
Following the news, shares in Godfreys jumped 40.5% and closed at 29.5 cents yesterday – up from 21 cents on Monday. Godfreys shares debuted at $2.75 in late 2014, and market value has dived from $100 million to under $10 million.
Enclosed in an ASX filing, Godfreys Non-Executive Chairman, Brendan Fleiter, affirms the retailer is considering the proposal, and has hired an independent expert to evaluate.
“The directors will keep shareholders informed of any further developments and will continue to act in shareholders’ best interests to maximise the value attainable in any transaction”, Godfreys asserts.
Co-Founder John Johnston is seeking 100% of Godfrey’s, and currently holds a 28% stake in the company, via his family’s ‘Arcade Finance’.
Spokesperson Grant Hancock states Arcade believes Godfreys “restructuring” to “restore value” would best be undertaken in a private company.