Caltex Australia has declined a takeover offer from Britain’s EG Group but wants to continue discussions about a sale.

The refinery and petrol station operator says the offer undervalues the company and does not represent compelling value for shareholders.

EG Group, or Euro Garages, in February offered $3.9 billion in cash for Caltex’s convenience store business and separate shares in a new, listed infrastructure and refinery company made up of Caltex’s remaining assets.

In a statement on Monday, the Caltex board said it took advice from financial and legal advisers and considered feedback from shareholders.

Despite its decision, the board said it was in shareholders’ interest to continue discussions with EG and has offered to do so.

Privately owned EG Group entered Australia in 2018 with the acquisition of Woolworths’ petrol stations for $1.7 billion.

This is not the first offer for Caltex Australia.

The initial one was from Canadian group Couche-Tard, which in February offered an $8.8 billion cash bid.

Couche-Tard has since increased its cash offer by 2.0 per cent to $35.25 a share, which Caltex is considering.