Clime Capital has made a bid to acquire CBG Capital, having proposed to buy all of the firm’s shares in an off-market takeover.
Clime has offered 0.8441 fully paid ordinary shares in itself and 0.2740 listed convertible notes issued by the company for each CBG share held, implying an offer value of $1.0336 per CBG share.
The investment company said the transaction will result in a company with a portfolio value of $137.2 million, providing scale benefits to both firms’ shareholders.
The offer is expected to provide benefits for CBG shareholders including exposure to higher yielding securities, a reduced pro-forma management expense ratio arising from economies of scale, and the removal of duplicated costs and expenses, along with an increase in liquidity of shares arising from the larger capital and shareholder base.
Clime added the takeover will demonstrate a clear path to growth for shareholders as well as hold the potential to narrow the discount to net tangible assets in Clime’s share price.
Following completion of the offer, CBG shareholders will hold approximately 19.2 per cent of the enlarged share capital base of CAM, assuming it gains 100 per cent of CBG shares.
CBG independent directors have advised they intend to recommend to their shareholders to accept the offer in the absence of a superior proposal, and subject to an independent expert’s report.
Clime has appointed Shaw and Partners as corporate adviser and Watson Mangioni as legal adviser over the offer.
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