Augusta Capital Ltd said yesterday ASX-listed Centuria Capital Group had told the New Zealand company it was withdrawing its takeover bid. The easy answer as to why is Augusta’s plunging share price.
The 2 companies announced a bid implementation agreement on 29 January.
Augusta chair Paul Duffy & managing director Mark Francis said in their brief notice yesterday: “Augusta has no further information regarding the termination at this time but will update shareholders.”
When the proposed bid was announced, Centuria held a relevant interest in 36.2% of Augusta’s shares as a result of entering lockup agreements, falling to zero on the ending of the bid.
Under the proposal, Mr Francis & Augusta executive director Bryce Barnett were to have stayed with the business on 3-year contracts to Centuria.
Centuria’s offer was going to be $2/Augusta share – a total of $180 million, for which Centuria intended to raise $A80 million in loans.
Augusta’s share price on 28 January, the day before the bid announcement, was $1.67. It rose to $1.975 the next day and peaked at $2.17 on 14 February. From $2.12 on 5 March, the price plunged to 97.5c yesterday.
3 February 2020: Strong NZ connections already for Augusta bidder Centuria