The biggest aluminium extruder and distributor in Australia rebuffed a potential buyout offer, as Capral Aluminium’s shareholders find the offer from Allegro undervalues the firm.
Shareholders made their voice known in a vote last week, rejecting the offer after the board of directors announced it and recommended a vote in favor of it a few days prior.
Allegro’s buyout offer proposed to buy all the company’s shares at A$7 each. However, shareholders approached the board of directors with concerns that the offer undervalued their company.
“The overwhelming response from those shareholders has been that the proposal undervalues Capral,” the firm said in a statement after the vote.
“In the circumstances, the Board has concluded that there is no realistic prospect that the proposal will gain the level of shareholder support required for it to succeed.”
Capral’s board said it would continue to pursue the firm’s best interests and work to build value for shareholders.
The firm’s stock closed Friday at A$7.50, down from A$7.95 at the prior Monday’s close.