THE BOARD RECOMMENDS SHAREHOLDERS REJECT GALLIN’S OFFER AND TAKE NO ACTION IN RELATION TO IT

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS SHAREHOLDERS REJECT GALLIN’S OFFER

The Board of Directors recommends that shareholders REJECT the takeover offer by taking no action in relation to it, ignoring all documents from Gallin and simply DO NOTHING.

On 25 March 2021, McPherson’s received a Bidder’s Statement from Gallin setting out its unconditional on-market takeover offer to acquire all the company’s shares for $1.34 per share. On 30 March 2021 McPherson's received a first supplementary Bidder's Statement from Gallin and on 6 April 2021 a second supplementary Bidder's Statement from Gallin. (The supplementary Bidder's statements did not vary the price offered per share). Gallin has not engaged with the McPherson’s Board or management and as such Gallin’s action can only be described as hostile.

The Board of McPherson’s has undertaken a detailed analysis of the Bidder’s Statement (as supplemented by the supplementary Bidder's Statements) and has made a formal response and recommendation to shareholders within the Company’s Target’s Statement. The Target’s Statement  was released to the ASX and dispatched to all shareholders on 8 April 2021, and can be viewed here.

The Board’s view is that the offer is MATERIALLY INADEQUATE AND HIGHLY OPPORTUNISTIC. The key reasons why you should REJECT the Offer are set out below and shown in detail in Section 2 of the Target’s Statement.

1.  The timing of the Offer is utterly opportunistic

2.  The Offer is inadequate and profoundly undervalues McPherson's

3.  The Offer does not reflect McPherson's strong brands and underlying business

4.  The Offer does not recognise McPherson's significant opportunities for growth

5.  By selling your MCP Shares to Gallin on market, you will lose the opportunity to participate in any potential upside in McPherson's

The Board advises shareholders to REJECT the offer and TAKE NO ACTION in relation to it.  

Further details can be accessed using the links below:

  1. Letter from the Chairman to Shareholders - 31 March 2021
  2. The Board’s Initial Response to the Offer - 31 March 2021
  3. MCP's Target's Statement - 8 April 2021

If you require further information or have questions in relation to the offer, please contact the McPherson’s Shareholder Information Line on 1300 219 452 (within Australia) or +61 3 9415 4328 (outside Australia) between 8.30am and 5.00pm (Sydney time) Monday to Friday.