The Independent Expert’s Report has approved the proposed merger between Allco Finance and Record Investments as “fair and reasonable”.
The non associated directors of Record recommend that Record shareholders vote in favour of the resolutions to approve the acquisition of Allco at the Record Shareholders’ meeting to be held on Friday June 09, 2006.
Record Investments chairman Barbara Ward said the proposed acquisition of Allco would further align the interests of Record and Allco. Allco has originated transactions that have resulted in more than 80% of Record’s earnings.
“We are creating a fully integrated business for the long-term interest of Record shareholders by combining the capital base and investment management skills of Record with the origination and structuring expertise of Allco,” Ward said.
Allco chairman David Coe said the transaction would provide Record with a broad range of global business opportunities to enhance future earnings growth and diversify its revenue stream into other asset classes.
“Allco is confident the merged entity will have the business platform in place and pipeline of transactions to target EPS growth of at least 20% for 2007,” he added.
By Nelson Yap
