AUS: Yarraman "disappointed" at E&T rejection - again
Evans & Tate has rejected the latest bid from US-based Yarraman.
The Australian company confirmed to the Australian Stock Exchange today (27 July) that it would not go with the Yarraman offer, which was submitted earlier this week.
The bid would have involved E&T acquiring Yarraman's Australian arm, Yarraman Estates, for around A$17m (US$15.02m), in the form of the issuance of E&T shares at A$0.11 each.
"Following an assessment and analysis of the offer it was not considered that it presented a sufficiently compelling proposition for Evans & Tate's business or stakeholders," said E&T's secretary, Michael Silbert.
Yarraman Estate said it was "disappointed" by the decision. The unit said that its "A$100m-plus offer … was both competitive and compelling and that the Evans & Tate board had delivered its decision before it had provided the opportunity for Yarraman to present the details of its compelling offer."
Yarraman spokesman Bill Middleton said: "This offer is backed by one of the world's leading financial institutions, GE Finance, and one of Australia's leading security houses, Patersons Securities Ltd."
The company said it plans to continue to promote the benefits of the offer to both the E&T board and all security holders.
Last month, ANZ Bank teamed up with Pendulum Investor Group to draw up a financial restructure proposal for E&T. The plan would see ANZ take a 64% stake in E&T in return for erasing A$45m of the A$100m debt E&T owes the bank. Pendulum will then buy half of ANZ's shares for an undisclosed sum, after which E&T will raise $16.7m in capital through a rights issue to be fully underwritten by ANZ and Pendulum.
"We believe the Yarraman proposal is superior to that of the remaining offer from Pendulum," Middleton concluded.
E&T's rejection is the third time Yarraman has seen its overtures for the Australian company rebuffed.
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