Kerr’s AEP extends PGC takeover offer
Australasian Equity Partners has extended its takeover offer for Pyne Gould Corporation to February 15 and declared the offer unconditional on acceptances.
Australasian Equity Partners has extended its takeover offer for Pyne Gould Corporation to February 15 and declared the offer unconditional on acceptances.
PGC shares briefly entered a trading halt this afternoon pending the announcement, which came just two hours before the $80 million offer was due to close.
The bid by AEP, which is owned by PGC shareholders George Kerr and US hedge fund Baker Street Capital, had captured 55.94% of the company by Friday.
AEP is offering 37c-a-share for PGC, which consists of an eclectic mix of assets following the merger of its Marac finance unit into Heartland New Zealand.
The offer is well short of the valuation put on the company by Grant Samuel of between 49c and 57c-a-share but has been pitched to shareholders as cash in the hand now, instead of a long road to share price recovery without dividend payments.
In a letter to shareholders AEP said it has waived the 90% minimum acceptance condition to its full takeover offer.
The offer is now unconditional as to acceptances, AEP said.
It also extended the closing date for the offer from today to February 15, 2012 (unless further extended in accordance with the Takeovers Code).
PGC shares remained unchanged at 35c.
Last week PGC’s independent directors Bryan Mogridge and Bruce Irvine said remaining shareholders might wish to consider selling into the takeover and then buy back in at a lower price.
They noted that the PGC share price could fall if AEP failed to get to 90%.
One sharebroker described their statement as unusual and not appropriate.
Mr Kerr himself is also a PGC director.
Duncan Bridgeman
Tue, 31 Jan 2012
Tue, 31 Jan 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Kerr’s AEP extends PGC takeover offer
18668