3 Apr 2013

Planned purchase of Mad Butcher 'fair' to Veritas

7:56 am on 3 April 2013

An appraisal report says Veritas Investments' $40 million planned purchase of the Mad Butcher is fair to the shell company's investors.

Grant Samuel values the Mad Butcher at between $42 million and $48 million, and says the offer is at the cheaper end of recent deals for controlling stakes in comparable firms.

Veritas is seeking $25 million to part-fund the purchase, and says institutional and retail investors' demand was three times the amount sought.

Veritas chairman Mark Darrow says the strength of demand surprised him.

Mr Darrow says he expects Veritas' shareholders to approve the deal when they vote on the offer and acquisition on 29 April.