WILSON HTM Investment Group (ASX: WIG) has advised shareholders to reject Mariner Corporation's hostile takeover bid.
After reviewing the bid, Wilton HTM managing director Andrew Coppin said the directors unanimously intend to recommend shareholders reject Mariner’s conditional, speculative and uncertain non-cash takeover bid.
“Each of the WIG directors has indicated his intention to reject the Mariner takeover bid in respect of WIG shares owned or controlled by him. Likewise substantial shareholder, Deutsche Australia Limited, which has a 19.55% holding, has advised WIG that it does not intend to accept the Mariner takeover bid. Deutsche Australia Limited has authorised WIG to make this statement of its intentions.
“Mariner is not proposing to acquire your WIG shares for cash, nor is there any cash component to the consideration proposed by it. Mariner is in essence a company with $1.35 million of net assets seeking to acquire control of WIG by issuing shares in Mariner. The Mariner takeover bid is asking you to exchange 3 WIG shares for 2 Mariner shares, implying a value that is approximately half of WIG’s current net tangible assets per share,” he added.
Copping said Mariner’s takeover bid is subject to numerous defeating conditions including the potential requirement for approval by Mariner shareholders and the prospect of Mariner withdrawing the takeover bid should the ASX All Ordinaries Index fall by 10% or more, or in the event of a material adverse change occurring to WIG.
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