WAM Active continues to bid for KBC at reduced price
WAM Active has announced it would continue to bid for Keybridge Capital Limited (KBC) but it has made a new reduced off-market bid takeover for all the issued fully paid ordinary shares at a all cash bid price of 6.5% per share.
The initial offer was withdrawn due to a review of publicly available information relating to KBC, the company said in the announcement to the Australian Securities Exchange (ASX) on Friday.
The proposed offer was subject to a number of defeating conditions, including a ‘no material decline in net tangible assets’ condition and a ‘conduct of KBC’s business’ condition which included the following:
- The reported after-tax net tangible assets (NTA) of KBC not decline by 5% or more below the after-tax NTA of KBC of $0.0647 per share announced to the ASX in the net asset backing – August 2019 report; and
- There were no changes to KBC’s board composition, including appointing additional directors, whether to fill a casual vacancy or otherwise.
According to the firm, the ‘conduct of KBC’s business’ condition was breached immediately after the proposed offer as announced, when KBC appointed two casual vacancies to the KBC board whereas the breaches of the ‘no material decline in NTA’ condition occurred only recently.
WAM Active said that although it was entitled to withdraw the proposed offer in light of KBC’s breaches, it was reticent to do so immediately. However, in the light of the breach of the ‘no material decline in NTA’ condition and the apparent material decline in KBC’s value over the period since 13 October, 2019, WAM Active made a decision to withdraw its proposed offer.
AUTHOR
Oksana Patron
Recommended for you
BlackRock Australia plans to launch a Bitcoin ETF later this month, wrapping the firm’s US-listed version which is US$85 billion in size.
Financial advisers have expressed concern about the impact including private market exposure is having on their tracking error budget, according to MSCI.
State Street will restrict its membership of global climate alliance Net Zero Asset Managers after the organisation dropped its flagship 2050 goals amid ESG backlash from the US.
Betashares has launched a global shares and a global infrastructure ETF as part of the firm’s strategic expansion strategy to support financial advisers in building more diversified portfolios.
