Thursday 21st June 2018
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Holdout shareholders of the Chow Group will have an expert determine how much they should be paid for the shares that the Chow brothers are compulsorily acquiring.
Shareholders with a combined 1.2 percent of Chow Group have objected to the 60 cents per share offer which millionaire businessmen John and Michael Chow made earlier this month. The Chows are the trustees of John Chow Investment Trust and Michael Chow Investment Trust, which collectively hold and control 90.09 percent of Chow Group's shares, and are enforcing mop-up provisions under the Takeovers Code.
The independent expert, who is yet to be appointed, will determine a consideration for the shares within 28 days of being appointed. The Chows said they will pay the 60 cents per share price on June 29, likely before that decision is made. If the expert determined consideration is more than 60 cents per share, the Chows said they will immediately pay the balance to shareholders, while if it is less they "may recover the excess from shareholders."
A certificate from independent adviser Simmons Corporate Finance saying the offer was “fair and reasonable”, falling within a fair value range of 58-to-65 cents per share, was filed to the NZX last week.
Chow's shares last traded at 60 cents on the small-cap NZAX, valuing the company at about $9.9 million.
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