RHG accepts Resimac takeover

Board accepts sweetened deal worth 49.5 cents per share, rejects rival bids.

The RHG (RHG) board has unanimously accepted the Resimac Syndicate's sweetened takeover offer, which values the target at almost $153 million.

In a statement to the Australian Securities Exchange yesterday, RHG said the syndicate would acquire all shares in RHG for cash consideration of 49.5 cents per share.

The offer was higher than the rival Pepper CDM proposal and provided more value certainty for shareholders, RHG said.

RHG entered a trading halt yesterday morning ahead of the decision.

Earlier this week, Resimac again sweetened its takeover bid for RHG in an attempt to stymie a rival bid put by Pepper Australia and the target's largest shareholder.

The Resimac-led syndicate increased its all-cash offer to 49.5 cents per share, from 48 cents - which was already an increase of 3.9 cents per share over its original offer.

The move came after spurned suitor Pepper Australia joined forces with Cadence Capital, the largest shareholder of RHG, to put an increased offer of 49.65 cents a share, in cash and Cadence scrip.

The competing offers have both been made under schemes of arrangement.