The Takeovers Panel orders MacarthurCook to get shareholder approval for its strategic alliance with IOOF Holdings.
The Takeovers Panel (TP) has ordered MacarthurCook to secure shareholder approval for its strategic distribution alliance with IOOF Holdings.
The TP ruled yesterday that the strategic alliance was "unacceptable" as it was forged without shareholder permission.
For the alliance to remain, TP demanded that MacarthurCook obtains majority shareholder approval through a voting poll by September 1.
IOOF, which has a 13 per cent stake in MacarthurCook, would not be allowed to vote on the matter, the TP ruled.
If the deal does not get enough votes by September 1, the alliance will be cancelled and IOOF's 13 per cent stake will be refunded.
MacarthurCook formed a strategic investment management and distribution alliance with IOOF on June 13.
On that day, MacarthurCook gave IOOF 13 per cent voting power in the company by issuing 3.45 million shares at $1.15 a piece to IOOF.
The Australian Securities Exchange (ASX) claimed on June 24 that MacarthurCook had breached a market rule by issuing those shares without shareholder approval.
AMP voiced its concerns to the TP on June 25 that its 18.4 per cent stake in MacarthurCook was diluted because of the IOOF alliance.
MacarthurCook has vowed to take the matter to the ASX Appeal Tribunal.
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