IOOF has moved a step closer to succeeding in its takeover bid for DKN Financial Group following a shareholder meeting.
In a statement to the Australian Securities Exchange, DKN said it reached more than 99 per cent of shareholder votes in favour of the proposed scheme of arrangement between DKN and IOOF.
"DKN is pleased to announce that at the shareholder meeting [on 27 September], eligible shareholders voted overwhelming to approve the resolution in relation to the proposed scheme of arrangement," the company said.
A second court hearing to approve the scheme is now scheduled for 3 October in the Supreme Court of Victoria.
If the court grants an order in favour of the scheme, DKN shareholders who hold shares on the record date for determining entitlements to receive the scheme consideration, expected to be 11 October, will receive 80 cents cash for each DKN share.
The implementation date for the scheme is expected to be 17 October and the scheme consideration is expected to be dispatched to DKN shareholders by 20 October.
In June, IOOF announced it had submitted an indicative proposal to the DKN board to acquire, through Austselect, 100 per cent of the ordinary shares it did not already own in DKN for $0.75.
The proposal was subject to certain conditions, including the unanimous support of the DKN board members capable of voting on the proposal. These conditions have now been satisfied and the parties have entered into a definitive agreement relating to the proposal.
IOOF already holds a relevant interest in DKN of 18.49 per cent through its wholly-owned subsidiaries.
