Takeover push as Arcade Finance grabs more than 50 per cent stake in Godfreys

Vacuum cleaner sales business Godfreys (ASX:GFY) has received a second, larger takeover offer from its 99-year-old co-founder John Johnston who wishes to re-privatise the troubled company.

Having already offered $13.1 million in early April, Johnston's company Arcade Finance has upped the ante to $13.7 million at 33.5 cents per share.

Johnston believes the best way forward is to take Godfreys off the ASX so that restructuring can occur.

Arcade already owns 37.6 per cent of Godfreys shares and with two major shareholders, NGE Capital (15.13 per cent stake) and Kentgrove Capital (4.64 per cent stake) recently accepting the offer, the takeover's approval could be imminent.

Arcade spokesman Grant Hancock said the new offer was to attract all shareholders who are yet to be convinced.

"This offer is designed to re-engage their interest and encourage to act quickly," says Hancock.

The addition of Kentgrove and NGE shares will take Arcade's voting interest in Godfreys to more than 50.1 per cent.

"While a number of shareholders had already accepted the initial offer, we believe many others have yet to consider their position." says Hancock.

The offer has been extended to remain open until June 7, with acceptance needing to be greater than 90 per cent for the takeover to occur.

Godfreys listed on the ASX in 2014 at $2.75 and has slide in price ever since.

The biggest positive spike in years came just last month when Johnston announced Arcade's initial offer.

The company has continued to see a downturn in revenue for three consecutive halves now, with little more attributing than weak sales.

Godfreys was founded before WWII and has been a staple in Australian vacuum sales for the last 70 years.