Australian funds manager Centuria Capital Group sent out its (roughly) $1/share takeover notice to Augusta Capital Ltd shareholders yesterday.
The new bid, in a combination of NZ currency & ASX-listed scrip, comes a fortnight after Centuria gave notice that it intended to pick up its bid at a much lower price than its original offer, which it pulled out of at the end of March.
In the meantime, Centuria lifted its Augusta stake to 23.3% through Augusta’s capital-raising in May, and Augusta managing director Mark Francis, director Bryce Barnett & other related-party shareholders tied themselves into supporting the bid.
That raised total support to 42.8% through lockup agreements.
Centuria’s original takeover bid was at $2/share, before the Covid-19 pandemic intervened with ‘life as usual’.
The capital-raising was made at 55c/share. Augusta’s on-market share price jumped from 68.5c on Friday 12 June to 90c the following Monday and were at 88c yesterday.
Centuria is offering buyout participants NZ20c cash plus 0.392 of a Centuria stapled security – equating, at the moment, to the implied $1/share.
Centuria said the enlarged entity would have $A8.9 billion of assets under management, and it would expand Augusta’s New Zealand operations in co-operation with the existing management team through the sharing of systems, resources & the deployment of additional capital.
Augusta shareholders whose address is outside New Zealand & Australia will be marked as foreign exempt shareholders. Assuming the takeover proceeds, they won’t get any of the Centuria stapled securities they’re entitled to. Instead, Centuria would issue those securities to UBS AG’s Australian branch, which would sell them on for the investor, net of sale costs.
26 June 2020: Francis unbent by Augusta’s loss, says fund manager ready to grasp new opportunities
23 June 2020: Augusta result out Friday evening, independent advisor on takeover appointed
17 June 2020: Centuria returns to complete Augusta takeover
13 May 2020: Centuria nears 23% stake in Augusta
27 March 2020: Centuria ends Augusta bid
3 February 2020: Strong NZ connections already for Augusta bidder Centuria
Attribution: Augusta release.