ClearView progresses with takeover offer
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Samantha Hodge is a journalist with InvestorDaily, a Morningstar publication.
The board of ClearView Wealth (CVW) has agreed to an implementation arrangement with CCP BidCo after the Crescent Capital Partners Management subsidiary lifted its takeover offer by 5 cents a share.
The takeover target yesterday informed the market it had entered into an implementation agreement with CCP BidCo after it increased its offer to 55 cents per share from 50 cents per share.
ClearView would declare a further 2.2 cents per share special dividend to all shareholders who accepted the revised offer once it was unconditional, the company said in a statement to the Australian Securities Exchange.
The offer requires Australian Prudential Regulation Authority and Foreign Investment Review Board approval and for CCP to have a 50 per cent interest in the company's shares.
ClearView's major shareholder, Guinness Peat Group (GPG), which holds 47.8 per cent of the shares, said it intended to accept the revised offer, bringing CCP's relevant interest to more than 50 per cent.
"For some time GPG has been an announced seller of its ClearView shareholding, giving rise to a situation not satisfactory to either GPG or the company and its share register," ClearView chairman Ray Kellerman said in the statement.
"Under the negotiated arrangements, GPG is able to fulfil its objective, ClearView shareholders receive a substantially increased payment opportunity, and the company gains a majority shareholder with the capital and experience to add value so that ClearView may continue the execution of its profitable growth objectives."
Under the terms of the agreement, CCP will extend the closing date for the offer to 14 September.
CCP made its initial 50 cents per share bid for the company in July.
At the time, the ClearView board advised its shareholders not to take action in response to the offer until it had completed a full assessment.
Later in July, the board rejected the $220-million takeover offer, citing an inadequate offer price.
ClearView shares closed half a cent higher at 58.5 cents yesterday.