Sharechat Logo

Update on the Augusta Capital Limited Takeover Offer

Tuesday 28th July 2020

Text too small?

Centuria New Zealand Holdings Limited (“Centuria”) has today announced that it has received acceptances in respect of its full takeover offer (the “Offer”) which bring its ownership of Augusta to more than 75%.

On 13 July 2020, the Independent Directors released a Target Company Statement (“TCS”) in response to the Offer, in which they recommended that, in the absence of a superior proposal, shareholders ACCEPT the Offer for all of their shares in Augusta. Today, the Independent Directors reiterate and affirm that advice.

The Offer has already been declared unconditional by Centuria which means if Centuria does not achieve acceptances that take it above the 90% threshold where it can compulsorily acquire all remaining shares, the Offer will close with Centuria owning more than 75% of the shares. At that level, Centuria will be able to exert an increased level of control over Augusta. Centuria will have the power to change the Augusta constitution, reduce the number of Independent Directors to take control of the Board and approve Special Resolutions on its own1. Minority shareholders retaining their stake in Augusta will be exposed to these risks. As noted in the TCS, Centuria will also have the ability to direct capital structure and dividend policies at Augusta, and will remain free to compete directly in the New Zealand market while controlling Augusta.

The Independent Directors note that substantially all of the significant institutional shareholders have accepted the Offer and, given the level of acceptances and the Offer being unconditional, no alternative proposal is likely. In light of these developments, the Independent Directors strongly recommend that remaining shareholders ACCEPT the Offer. 

Source:  Augusta Capital Limited 



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Reserve Bank of New Zealand Committed to Action as It Responds to Data Breach
MHM Automation Limited (NZX: MHM) Settlement of New Plymouth Building Sale
Napier Port Holdings Limited (NZX: NPH) First Quarter 2021 Trade Volumes
New Zealand Oil & Gas Limited (NZX: NZO) Mahato PSC Update - Oil Production
Michael Hill International Limited (NZX: MHJ) Update - Dividend/Distribution
Michael Hill International Limited (NZX: MHJ) Trading Update
Tilt Renewables Limited (NZX: TLT) Q3 December 2020 Quarterly Production Results
Mercury NZ Limited (NZX: MCY) Tiwai to continue operations through 2024
NZXO Announcement: Rollover of Fletcher Building Industries Ltd Notes - FBI150
Meridian Energy Limited (NZX: MEL) Rio Tinto confirms Tiwai Exit in December 2024

IRG See IRG research reports