RHG enters trading halt

Lender in discussions with Resimac-AMAC syndicate on takeover bid.

RHG (RHG) shares have been placed in trading halt at the group's request, pending the release of an announcement about a possible takeover.

In a statement to the Australian Securities Exchange, RHG said it has received a further takeover proposal from the Resimac and Australian Mortgage Acquisition Company syndicate and is in discussions.

RHG said it is not yet clear whether it will accept the proposal.

The target last week received an addendum to a rival takeover bid from Pepper Australia and Cadence Capital (CDM).

Pepper and Cadence said they would give eligible shareholders the chance to sell unmarketable parcels of Cadence shares without brokerage costs, and to top up their holdings of Cadence shares free of brokerage.

RHG's shares will stay in trading halt until the start of trade on October 17 or when the announcement is released.

The RHG board has already accepted the Resimac syndicate's takeover offer to acquire all shares in RHG for cash consideration of 49.5 cents per share, but Pepper and Cadence say their counterproposal of 50.8 cents per share is superior.

The Takeovers Panel has declined to conduct proceedings on Resimac's application to block Cadence's takeover bid.