Clime Capital Limited has announced that CBG Capital Limited’s independent directors have advised their intention to recommend to CBG shareholders to accept the former’s acquisition offer, in the absence of a superior proposal.
Clime made an offer to acquire all the remaining shares in CBG under an off-market turnover bid, with 0.84441 fully paid ordinary shares in CAM and 0.2740 listed convertible notes issued by CAM for each CBG share held. The offer would imply value of $1.0336 per CBG share, the firm said in a statement issued to the Australian Securities Exchange (ASX).
Additionally, the offer was expected to provide significant benefits to CBG’s shareholders by giving them exposure to higher yielding securities, a reduced pro-forma management expense ration arising from economies of scale, and an increase in liquidity of shares arising from the larger capital and shareholder base, among others.
Also, the transaction would result in a materially larger investment company with a portfolio value of $137.2 million.
The company advised that each of the CBG directors confirmed they intended to accept the offer for all of the shares in which they had a relevant interest, subject to the same conditions.