- Redflex (RDF) has been granted Federal Court approval for a scheme of arrangement outlining its proposed acquisition by VM Consolidated
- VM, an indirect wholly owned subsidiary of Verra Mobility, is set to acquire the company, subject to a subsequent condition
- In a hearing today, the Federal Court of Australia has approved a varied scheme whereby RDF can now obtain a required approval by August 13
- Redflex expects to lodge court orders from the hearing with the Australian Securities and Investments Commission by May 17
- Redflex shares are in the grey, last trading at 95 cents each
Redflex (RDF) has been granted approval by the Federal Court of Australia for a scheme of arrangement outlining the company’s proposed acquisition by VM Consolidated.
RDF is a transport solutions company that develops intelligent traffic management products and services, which are sold around the world.
VM, an indirect wholly owned subsidiary of Verra Mobility, is set to acquire the company, subject to a condition subsequent.
The company previously advised Redflex that regulatory approval from the General Authority for Competition in the Kingdom of Saudi Arabia (GAC) — a condition precedent to the scheme becoming effective — would not be received in time for a second court hearing held today.
As a result, and with all other relevant conditions precedent satisfied or waived, RDF sought court orders to vary the scheme, meaning the GAC approval could instead be satisfied within a court-approved defined period.
The court has now approved the varied scheme, with Reflex expecting to lodge orders from today’s hearing with the Australian Securities and Investments Commission by May 17.
Notably, RDF says the terms of the scheme are now “locked in”, however, they remain subject to GAC approval being obtained by August 13.
Once received, the scheme will become effective immediately.
On the market this afternoon, Redflex shares are in the grey, last trading at 95 cents each at 3:17 pm AEST.