Lynch Group (LGL AU): (Another) Clean Offer From TPG

• Lynch Group (LGL AU), an integrated wholesale floral play, has entered into a Scheme Implementation Deed with Hasfarm Holdings and Darwin Aus Bidco - both of which are TPG entities.

• Hasfarm is offering A$2.245/share, a 28.3% premium to last close. The consideration includes a fully franked dividend of A$0.09/share. It's April 2021 IPO price was A$3.60/share.

• The Offer has unanimous board support. 38.5% of the register is supportive. Hasfarm has also entered into a call option for 19.9% of shares out. Done deal.

Lynch is a super illiquid stock. If that's not your bag, look away now.

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Conclusions

• Another clean deal.

  • This is the second Offer this month from TPG following its tilt for Infomedia Ltd (IFM AU): Infomedia (IFM AU): TPG's Clean Deal

• Optically TPG's Offer is pitched at levels Lynch has bumped up against and retraced in recent years.

• Financing in place. Offer metrics appear fair.