BLINDSIDED by the thought of gaining control of Multiplex, Brookfield Asset Management said yesterday it could have overstated its interests in the construction giant.
Brookfield’s $4.23 billion takeover bid for Multiplex appeared to be on track last week after it disclosed it had secured a 61.72% stake in Multiplex – through its associate Brookfield BidCo (Australia) which held a 47.08% interest and the instructions held under institutional acceptance facility was 14.64%.
Yesterday, however, Brookfield admitted its relevant interest in Multiplex could work out to be less than 50% meaning Brookfield had not satisfied the first condition of the bid, that it must secure a minimum 50.1% ownership of Multiplex shares.
Brookfield’s bid was extended last month from its original expiry date of August 31 2007 to September 28 2007.
In a market statement, the Canadian asset manager said it is investigating a likely error in its substantial holding filings made with respect to Multiplex.
“Over the course of the weekend, Brookfield has now been alerted to the likelihood that, through administrative error, the 16 August acceptance may have been made by or on behalf of Brookfield,” Brookfield BidCo (Australia) director Jeffrey Blidner said.
Blidner said Brookfield had previously secured 14.99% of Multiplex securities and on August 14, BidCo’s registry indicated that it had received acceptances for 14.75% of Multiplex securities into BidCo’s takeover offer for Multiplex during the course of the day.
“If the takeover offer has been accepted by or on behalf of Brookfield for some or all of its holdings, then its relevant interest in Multiplex securities and combined interest together with instructions under the institutional acceptance facility will have been overstated by the amount of the accepted Multiplex securities.
“Brookfield is working diligently to confirm this as quickly as possible,” he added.
Blidner said the Australian Securities and Investments Commission and Multiplex have been notified of the potential error.
“Brookfield will verify the position with its broker, the custodian and share registry as soon as possible and will at that stage file a revised substantial holder notice, if required.
“If all 125,610,327 Multiplex securities held by or on behalf of Brookfield have been accepted into the BidCo takeover offer, then Brookfield‘s relevant interest in Multiplex Securities and instructions received under the institutional acceptance facility would be less than 50%,” Blidner concluded.
Australian Property Journal
