WAM acquires PAF trust

Wilson Asset Management (WAM) has acquired the PM Capital Asian Opportunities Trust (PAF) after weeks of negotiations.

The trust was initially set to be acquired by PM Capital Global Opportunities (PGF) but the offer failed to achieve the requisite 75% shareholder approval.

The vote came just days after the release of findings from the Australian Government Takeover Panel that there had been “unacceptable circumstances” surrounding the purchase of shares in PAF by PM Capital and Moore Group (the associated entities of PM Capital founder and chief investment officer Paul Moore).

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This left WAM as the only other bidder, it had accrued a 36% shareholder stake and was due to hold a vote on 14 January. However, on 11 January, it increased its bid for PAF from one WAM share for every 1.99 PAF share to one WAM share for every 1.95 PAF share.

Until then, PM Capital had been extremely vocal about shareholders rejecting the WAM offer but the new offer led to it eventually accepting the offer in the absence of superior proposals emerging.

In a statement to the Australian Securities Exchange (ASX), PGF said: “Whilst PM Capital Global Opportunities fund is disappointed that the Scheme of Arrangement with PAF did not proceed, PGF has now accepted the WAM offer for all of the shares that it held in PAF”.



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