Monday 29th March 2010
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Allan Hawkins, the former head of Equiticorp who was jailed in the 1990s for his role in the so-called H-fee scheme, has finalised the takeover over of Cynotech Holdings, after he convinced enough shareholders to swap their stock for securities in a shell company he controls.
Cynotech Holdings, currently listed on the NZX, received a final notice today advising an unconditional takeover after holders of 78.4% of ordinary shares, 51.4% of convertible preference shares and 71.9% of warrants agreed to the swap.
Hawkins, the CEO and chairman of Cynotech Holdings, needed holders of at least 50% of ordinary shares to allow the takeover to happen.
Phil Briggs, who owns 17% of Cynotech Holdings and has agreed to the offer, told the Independent Business Weekly newspaper that he sees Hawkins’ takeover as a “controlling sell-down of the company.
”The offer, originally made in December then amended in January, would allow Hawkins to delist Cynotech Holdings after he acknowledged in his takeover document that its foray as a listed company had failed.
Shareholders would lose voting rights by accepting the preference shares, which valued the Cynotech Holdings shares at 13.5 cents each, and offered an 8% annual interest payment. Interests associated with the Hawkins’ family currently own about 22% of the listed company, whose shares last traded down 2.3% at 4 cents a share.
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