Australia's largest extruder and distributor of aluminium products, Capral Aluminium with five manufacturing sites strategically placed across the country have rejected Allegro's purchase offer due to critical assessment from shareholders.
A few days earlier, the company acknowledged a takeover proposal and recommended its shareholders vote in favour of the proposed transactions.
The company with a mission to invest in rebuilding great businesses and developing specialised talent through transformational capital, Allegro proposed a 100% acquisition of Capral’s share for $7 each.
However, following this announcement, the aluminium extrusion company’s Board of Directors has received feedback from multiple shareholders to not progress with the deal, as it undervalues the company.
The company explained: "The overwhelming response from those shareholders has been that the proposal undervalues Capral.”
"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," it added.
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