A vote for the PM Capital Asian Opportunities (PAF) investment trust to be acquired by PM Capital Global Opportunities (PGF) has not been carried after failing to secure the necessary majority.
In an announcement to the Australian Securities Exchange (ASX), the firm said the merger received 70.7% approval by shareholders. However, this was insufficient to meet the 75% amount for approval.
“PAF will continue as a listed entity operating its investment strategy of seeking to provide long term capital growth through investment in a concentrated portfolio of listed securities across the Asian region for the benefit of PAF shareholders,” the statement said.
PM Capital came under scrutiny in the week prior to the vote after the Australian Government Takeover Panel found there had been “unacceptable circumstances” regarding purchases of shares in PAF by PM Capital and Moore Group (the associated entities of PM Capital founder and chief investment officer Paul Moore).
There was still the possibility for PAF to be acquired by Wilson Asset Management (WAM) which had submitted an unconditional off-market takeover bid which was scheduled to close on 14 January.
Speaking to Money Management, Geoff Wilson, chair of WAM, said the decision was a “great outcome” for shareholders.
“The vote was a pleasing outcome, PGF shareholders have dodged a bullet as their NTA [net tangible assets] would have been diluted by this deal so it is a great outcome for them. The only winner from it would have been PM Capital and Paul Moore.”
He said 14.4% of PAF shareholders had already approved the WAM deal and he was hopeful of more approvals by 14 January as WAM’s offer was a 5% premium to NTA.
PM Capital said it was “considering what alternatives were available” to it regarding PAF.
