Shares in Redflex Holdings (ASX:RDF) have jumped 6.4% since the company revealed it may receive a takeover bid higher than the $2.50 per share informally offered by a Macquarie Group (ASX:MQG) unit.  It was reported back in June that it was looking to take over Redflex for $275M and that is when the ASX: RDF shares were trading around $2 per share.  If our calculations are correct the takeover bid should be just under $340M now.

From an opening price of $2.36, RDF shares closed the day's trading 8.5% higher at $2.55. Redflex's range of point-to-point cameras on the Hume Highway was taken offline this week after it was revealed they had incorrectly reported traffic infringements on nine occasions. The problem occurred as a result of cameras briefly falling out of synch with each other, and while Redflex has devised a solution the devices will need to be thoroughly tested until police are willing to turn them back on.

The red light photo enforcement technology company said in a statement that it had received indicative offers from “a number of credible parties” for over $2.50 per share. Redflex has entered discussions with a short list of these parties, including due diligence proceedings.   But the offers made are so far non-binding, and there can be no assurance that any of the talks will result in a formal proposal, the statement read. Even the Macquarie Group unit's offer, made in August, was non-binding. Redflex had advised shareholders to take no action on the proposal.

Macquarie Group is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie employs more than 14,600 people in approximately 70 office locations in 28 countries

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Redflex Takeover Bid for $275M