OAMPS has taken the next step in its proposed sale to Perth-based conglomerate Wesfarmers, last week recommending its shareholders take up the insurer’s offer of $4.50 a share.

The Wesfarmers offer gives OAMPS shareholders the chance to get about a dollar more for their shares than they were worth before the bid. The offer takes into account the average price of shares in the three months before Wesfarmers announced its $700 million cash offer.

“A key factor for the recommendation by the OAMPS Board was price,” OAMPS said in a statement.

It said it had considered various proposals for creating value for its shareholders and decided the Wesfarmers takeover bid provided the best option for shareholders in terms of price and certainty.

OAMPS Group CEO Tony Robinson says the company recently had approaches from private equity houses with an interest in transactions involving OAMPS, but its board believes the Wesfarmers deal is the best option.

“Wesfarmers’ strengths will help accelerate the growth and competitiveness of the businesses,” he said. “This, coupled with the opportunities available in a larger organisation, means it is a tremendous outcome for all our stakeholders.”

OAMPS shareholders have until October 27 to respond.