A Vancouver-based holding company is crafting its own takeover bid for a Surrey brewery.
Premier Diversified Holdings Inc. (CSE:PDH) is attempting to boost its 16.7% stake in Russell Breweries (TSX-V: RB) to a controlling interest of 51%.
The holding company announced June 26 it would offer one Premier share for 2.5 shares of Russell Breweries, representing a 37% premium based on Russell’s closing price on June 25.
Premier has already entered into a lock-up agreement with one shareholder who possesses 2.3% of the craft brewer’s shares, which would give the holding company a 19% stake in Russell Breweries.
Shareholders have until August 4 to accept the offer from Premier.
Shares of Russell were trading at $0.06 before trading was halted June 25.
The craft-beer-maker is known for brews such as Wee Angry Scotch ale, Blood Alley bitter and IP'eh India pale ale.
Premier, meanwhile, holds interests in a Bermuda-based insurance company as well as diagnostics clinics in B.C. and China. The company said it’s looking to create a lean organization with significant cashflows and opportunity for growth.
Premier has about $5 million in working capital as of March 31.
