RHG board being 'quite selective' in evaluating Pepper takeover bids

by AB10 Sep 2013

In the latest chapter of the RHG takeover saga, the board of RHG (formerly RAMS) is now assessing a revised bid offer of 36 cents per share, up from 35 cents from Pepper and Cadence Capital, as the war for the broken company’s loan book heats up.

Pepper and Cadence Capital maintain a scrip component of one share in Cadence for every 10 in RHG, according to the Australian Financial Review. The new offer values the bid at 50.8 cents per share, compared to a 49.5 cent bid from rival Resimac.

Resimac has two business days to provide a counterproposal.

Meanwhile, Pepper has reportedly used the latest bid as a means to strike out at the RHG board, claiming the group failed to adequately engage with the Pepper and has been ‘quite selective’ in how they’ve evaluated Pepper-initiated proposals up until now.

“We believe we have put forward a superior counterproposal and would welcome the opportunity to meet with the RHG Board to discuss its merits,” Pepper CEO Patrick Tuttle tells reporters.

“While we are aware of the restrictions of the existing scheme of arrangement documentation between RHG and the Resimac Syndicate, we find it very surprising that we have not been invited to discuss any of our proposals to date with the RHG board”.

RHG’s board says it’s assessing the proposal.