Panel denies RHG bid block

Govt body declines to conduct proceedings after suitor Resimac's application.

The Takeovers Panel has declined to conduct proceedings on an application from Resimac to block a rival takeover bid for RHG (RHG).

Resimac and partner Australian Mortgage Acquisition Company had applied to the panel to block rival suitor Cadence Capital (CDM) from voting on Resimac's takeover offer, saying Cadence has a conflict of interest as it is an RHG shareholder that would receive benefits under its competing offer in partnership with Pepper Australia (see Tom Elliott's 10 stocks in the takeover spotlight).

In a statement to the Australian Securities Exchange, the panel said there was no reasonable prospect it would make a declaration of unacceptable circumstances or the final orders sought.

The panel said it did not think it would stop rival bidder Cadence Capital from voting on a scheme under which its shares could be expropriated.

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