We have a bidding war for API, Sigma (SIG) have placed a bid (non-binding, conditional… etc) valued at $1.57 ($0.35 cash + 2.05 SIG shares) in competition to WES’s revised bid of $1.55 from 16 Sep.  Both offers would be reduced by the cash component of any dividends.

The API board is supportive of the bid and allowing due diligence.

The company sees advantages in the bid that shareholders will be able to continue their association with API’s medium and long term growth prospects (due to becoming 48.8% holders in SIG) and would retain future benefit to franking credits which would be lost with the WES deal.

The SIG deal is more like a merger than WES’s buyout, but a mix and match offer is included in the SIG deal allowing shareholders to chose to maximise scrip or cash, subject to caps, which makes it interesting and will require the detail to be available to assess.

API is trading at $1.475, a relatively normal discount to both offers.

Note: I hold API, but have been looking to exit for a while and hope for a cash take over.