Watchdog flags concerns with Finders deal
PERTH (miningweekly.com) – The Australian Securities and Investment Commission (Asic) has made an application to the Takeovers Panel that could impact the power play for ASX-listed Finders Resources.
Finders is currently the target of a takeover bid from suitor Eastern Field Development, which was offering shareholders 23c a share for their holding in the company.
In its application to the Takeovers Panel, Asic asked that acceptance of the takeover offer from shareholder Taurus Funds Management and two of the company’s independent directors should be cancelled, as the parties had, in accepting the takeover offer, departed from their ‘last and final statements’, which had stated that they would not accept the offer.
With Taurus and the independent directors accepting the Eastern Field offer, the suitor’s shareholding in Finders increased from 48.4% to 60.22%, prompting Finders to urge its remaining shareholders to accept the offer.
Asic told the Takeovers Panel that this changed circumstance meant that investors in Finders have potentially suffered losses in connection with trading Finders shares, and acceptance of the takeover offer had potentially occurred in circumstances in which they would not have, if the departure from the ‘last and final statements’ had not happened.
While Finders on Thursday took note of Asic’s application to the Takeovers Panel, the company still urged its remaining shareholders to consider accepting the offer, as it closed on Friday.
Eastern Field currently has an interest of some 91.19% in Finders, which includes the near 12% shareholding from Taurus and the independent directors.
Finders noted that with the Takeovers Panel application under way, the company’s remaining shareholders should not assume that the 90% compulsory acquisition and buy-out threshold would be maintained, and that their Finders shares would be acquired by Eastern Field under a compulsory process after the offer closes.
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