New deal offered to Argosy unitholders
Argosy unitholders are being offered a more attractive management buyout.
The independent directors of the manager of listed Argosy have struck a revised deal to reduce the cost of a management buyout to $20 million instead of the $32.5 million previously mooted.
The external manager, OnePath, is offering to relinquish its contract in favour of internalising the (same) management team.
The initial price sought by OnePath, $32.5 million, prompted an alternative offer from listed DNZ.
DNZ said yesterday it was initiating legal proceedings to force the manager to put forward DNZ's buyout proposal. DNZ envisages paying a termination fee of $12 million as permitted under the trust deed governing Argosy and installing its own management team.
But the indepndent directors and OnePath have said this will incur many costs and the procedure for doing so is complex and disruptive.
The trustee would have to immediately dismiss the manager and install another interim manager before calling for expressions of interest for a permanent manager.
The various proposals will be put to unitholders at a meeting in late August.
Chris Hutching
Fri, 15 Jul 2011
Fri, 15 Jul 2011
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New deal offered to Argosy unitholders
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