Airwork appoints Grant Samuel to examine takeover offer

Monday 17th October 2016

Airwork Holdings, the NZX-listed specialist aviation company currently subject to a takeover bid from China's Zhejiang Rifa Holding Group (RIFA), has appointed Grant Samuel to prepare an independent advisor's report on the offer.

Independent chairman Mike Daniel and independent director Rob Flannagan have been appointed to consider the company's response to RIFA's proposal.

Earlier this month, RIFA confirmed it had entered into a takeover lock-up deed with the company's major shareholders at $5.40 a share in an effort to acquire 75% of Airwork's shares. Airwork listed on the NZX in 2013 at $2.60. Parties associated with non-executive director Hugh Jones hold 58.943 percent of the Auckland-based company.

In addition, Condor Holdings, associated with Jones, has agreed to sell the number of shares required to fully repay the amount outstanding under loans owed to it by participants who were allocated shares, under its funding arrangements trust deed, which have not yet vested.

Airwork operates and leases helicopters and fixed-wing aircraft, as well as maintaining them. The deal is subject to approval from the Chinese government and sign-off from the Overseas Investment Office.

RIFA operates in seven countries including China, Australia, and Italy, and its core business is textile machinery and electronic precision machinery.

Shares in Airwork were unchanged at $4.80 and have risen 23 percent since the start of the year. The closing price peaked at $5.05 after the takeover offer was announced.

BusinessDesk.co.nz

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