WAM hopes PM Capital breach will strengthen bid
Wilson Asset Management (WAM) believes its bid to acquire the PM Capital Asian Opportunities fund (PAF) has been strengthened after the Australian Government Takeover Panel found PM Capital breached the Corporations Act.
Listed investment company (LIC) PM Global Opportunities fund (PGF) was hoping to acquire PAF, another LIC run by PM Capital.
However, on 6 December, a statement was issued to the Australian Securities Exchange (ASX) from the Australian Government Takeover Panel that there had been “unacceptable circumstances” as extra shares in PAF had been bought by PM Capital and entities of PM Capital found and chief investment officer, Paul Moore.
Geoff Wilson, WAM chief executive, which was making a rival bid for PAF said he hoped the news would make shareholders more likely to reject the bid between PGF and PAF. This would leave WAM the successful bidder.
Speaking to Money Management, Wilson said the decision would strengthen the bid in WAM’s favour as shareholders would realise PM Capital had not followed the rules.
“This is a significant slap in the face for Paul Moore and the entities,” Wilson said.
“There is a high probability the deal will be voted down now, any retail shareholder would question if the firm was acting in their best interest.
“Our bid doesn’t change, it strengthens our bid as people will realise that they did not follow the correct procedures.”
A vote on the PGF/PAF deal would take place on 13 December.
AUTHOR
Laura Dew
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