Resimac tries to block Cadence

Resimac Ltd has applied to the Takeovers Panel to block rival RHG (RHG) suitor Cadence Capital (CDM) from voting on Resimac's takeover offer.

In a statement, Resimac said Cadence has a conflict of interest as it is an RHG shareholder that would receive benefits under its rival takeover offer in partnership with Pepper Australia Pty Ltd.

Resimac said Cadence is the only shareholder to receive all cash consideration in the Pepper proposal, which also allows for a placement of Cadence shares to all other RHG shareholders.

Cadence charges an ongoing fee based on the total value of shares on issue, Resimac and partner Australian Mortgage Acquisition Company Pty Ltd said. 

Resimac asked the panel to stop Cadence from voting against Resimac's offer to allow other RHG shareholders to consider the offer.

Resimac also wants Cadence to provide more detail on the possible buyback of Cadence shares under the Pepper proposal. 

The suitor asked for clarity on whether the buyback is off-market or on-market, what approvals may be required, at what price it will be conducted, to what extent RHG shareholders can participate, and to what extent RHG shareholders can be sure it will take place.