Bell IXL Investments has said it would not proceed with a conditional off-market takeover bid for all of the shares in listed investment company India Equities Fund (IEF).
The proposed bid was no longer commercially justifiable and Bell decided not to go ahead with the offer after one of the deal's conditions was breached, Bell IXL executive chairman and managing director Massimo Cellante said.
"The proposed offer was subject to a number of conditions including a requirement that after 17 September 2010 there was no rise or fall greater than 10 per cent in the net tangible asset value per share for either fully paid ordinary shares in IEF or limited voting ordinary shares in the company," he said.
"On 8 November 2010 the company undertook an analysis of its financial position, including a revaluation of all listed investments to market value.
"This internal analysis indicated an increase in the net tangible asset value per share for the limited voting ordinary shares in the company."
The company subsequently commissioned its auditors, Grant Thornton Chartered Accountants, to review the analysis.
"Grant Thornton has confirmed that the net tangible asset value per share, as calculated by management, for the limited voting ordinary shares in the company has risen by more than 10 per cent since 17 September 2010," Cellante said.
Bell IXL, listed on the National Stock Exchange of Australia, had originally offered 6.7 cents for each ordinary share of IEF, which is listed on the Australian Securities Exchange.
