Denied: Takeovers Panel rejects Resimac application

by Mackenzie McCarty04 Oct 2013

Resimac’s attempt to take the RHG acquisition case to the Takeovers Panel has been rejected, with the board claiming that “there was no reasonable prospect that it would make a declaration of unacceptable circumstances or the final orders sought.”

As reported by Australian Broker, Resimac and the Australian Mortgage Acquisition Company (AMAC) submitted an application to the panel early last week in an effort to stop rival bidders Pepper and Cadence Capital from gaining the upper in the battle over RHG.

Pepper and Cadence recently raised the cash part of their bid to 36 cents per share, up from 35 cents, maintaining a scrip component of one share in Cadence for every ten in RHG. Cadence is currently RHG’s biggest shareholder, with 17.3% of the group’s stock. Resimac and AMAC believe Cadence Capital would stand to benefit at the expense of other RHG shareholders, should the Pepper bid be accepted.

However, the case from the Takeover Panels’ eyes wasn’t so clear.

"One of the reasons the panel reached this conclusion was that it did not think it would make an order preventing Cadence from voting on a scheme under which its shares could be expropriated,” it said.