This article is from the Australian Property Journal archive
OAKS Hotels & Resorts has rejected the takeover proposal from Edge Equity Investors despite the higher offer price of 60 cents per share.
Chairman Douglas Wong said the board of directors has considered the proposal and believe it to be highly conditional and is subject to financier due diligence.
“The Edge proposal provides that a takeover offer will only be made after satisfaction of a number of conditions, including confirmatory due diligence by Edge and its financiers for a period of up to four weeks; and no party acquiring more than 50% of the shares in Oaks.
“Given that Minor holds a relevant interest in 60.3% of the shares in Oaks, the Edge proposal is in effect conditional on ASIC’s decision to grant Minor tender offer relief to acquire the 34.4% of shares in Oaks held by PricewaterhouseCoopers as receivers and managers of Centrepoint Holdings Pty Ltd (receivers and managers appointed) and Oaks Apartment Management Pty Ltd (receivers and managers appointed), being overturned,” Wong continued.
Wong said the board does not consider the Edge proposal as presented to be a superior offer and maintains its recommendation that Oaks shareholders ACCEPT Minor’s offer of $0.52 per share, in the absence of a superior offer.
Australian Property Journal
