The panel has received an application from London City Equities Limited in relation to the takeover of Tranzact by Gro-Aust, seeking an extension to the takeover bid to 15 February 2014.
In a statement yesterday, the panel outlined the concerns of London City Equities – a 7.4 per cent Tranzact shareholder – in relation to the takeover.
London City Equities is concerned about “the failure to use 2014 profit expectations in assessing ‘maintainable earnings’”; “the oversight in not valuing the Smart-Save Superannuation Fund of $235 million on a percentage of FUM basis”; and “the continual reliance on the bidder’s executive for information”, among other things.
The company submitted that Tranzact’s delay in providing information to its shareholders and the circumstances surrounding the applicant becoming an ‘insider’ on 16 October 2013 are contrary to an efficient, competitive and informed market.
London City Equities also submitted that Tranzact shareholders “were rushed into accepting the offer and did not have a reasonable time to consider the proposal”.
London City Equities could not be reached by the time of publication, but in a 24 December 2013 ASX announcement, noted that its “current perusal of the independent expert’s report has raised a number of serious questions on methodology and pricing”.
In the same announcement, the company also stated that “it believes other significant shareholders are in a similar position”.
Asked whether he had received further applications from other Tranzact shareholders, Takeovers Panel director Allan Bulman said he was not able to say either way, only confirming that one of the orders London City Equities has sought is for the takeover to be extended.
“The next step is the president or acting president will appoint a panel and that panel will decide whether or not to conduct proceedings, which is basically to decide whether or not there is anything in it,” Mr Bulman said in relation to the application.
“If they decide there is nothing in it then that will probably take about a week,” he said.
“If they decide there is something in it and conduct proceedings, the matter will take two to three weeks.”
