Saudi's R23bn Offer For Barloworld Gets The Nod From Advisors

The offer by a unit of Saudi Arabias Zahid Group and local partners for R120 per share, or R23 billion, is fair value, according to Institutional Shareholder Services Inc. and Glass Lewis Co.

The proxy companies said they also took into consideration independent due diligence by Rothschild Co., which estimated the stock is worth between R105.53 and R119.43 per share.

'This proposal offers shareholders an attractive opportunity to exit the stock at a reasonable cash premium,' San Francisco-based Glass Lewis recommended in a note. Separately, ISS said 'the offer is at an attractive premium.'

The two companies didnt comment further on emailed queries by the time of writing.

London-based investor Silchester International Investors which holds close to 18 of the company has said it will reject any price below R130 a share. Barloworld has scheduled a final shareholder meeting on the deal for February 26 and needs backing from 75 of its investors to push the current offer through.