- Listed investment company Concentrated Leaders Fund (CLF) has recommended that shareholders reject WAM Capital’s takeover offer
- Earlier this month, WAM offered to buy CLF shares at a two for 3.7 share-for-share exchange
- CLF’s Independent Board Committee (IBC) plans to tell shareholders to vote a no deal to the offer once it is made
- IBC believes the offer is opportunistic and fails to provide CLF shareholders sufficient value for their shares
- CLF shares ended the day a slight 0.93 per cent in the red to trade for $1.07. WAM also ended the day down 0.47 per cent, trading for $2.14
Listed investment company Concentrated Leaders Fund (CLF) has recommended that shareholders reject WAM Capital’s takeover offer.
Earlier this month, WAM offered to buy CLF shares at a two for 3.7 share-for-share exchange.
After evaluating the deal, CLF’s Independent Board Committee (IBC) intends to tell shareholders to vote no deal to the offer once it is made.
IBC believes the offer is opportunistic and fails to provide CLF shareholders with sufficient value for their shares.
“The offer price substantially undervalues CLF, as it represents a material discount to CLF’s pre-tax net tangible assets (NTA),” he said.
The company said shareholders who accept the offer would be giving away 14.74 per cent of value.
CLF’s IBC have also stated that shareholders will suffer a serious dilution of valuable franking credits that they currently have an interest in.
“A Target’s Statement containing the IBC’s recommendation and the reasons for its recommendation will be sent to you after WAM Capital has dispatched its Bidder’s Statement,” the company explained.
“You are advised to take no action in relation to WAM Capital’s Offer until after you receive CLF’s Target’s Statement,” it told shareholders.
WAM has not released any new announcements relating to Concentrated Leaders Fund.
CLF shares ended the day a slight 0.93 per cent in the red to trade for $1.07. WAM also ended the day down 0.47 per cent, trading for $2.14.