APM Human Services - Shareholders Overwhelmingly Support Key Resolutions
APM HUMAN SERVICES INTERNATIONAL LIMITED (APM) Share Update September 2024 Tuesday 17th
APM Human Services Announces Overwhelming Support for Key Resolutions
APM Human Services International Limited (ASX: APM) has announced the results of its General Meeting and Scheme Meeting held on 18 September 2024, where shareholders showed overwhelming support for key resolutions.
Instant Summary:
- 99.88% of votes were in favor of the Item 7 Resolution at the General Meeting.
- 99.90% of votes were in favor of the Scheme Resolution at the Scheme Meeting.
- APM's Founder and Executive Chair, Megan Wynne, and her associates hold 318,580,868 shares.
- If Wynne's votes were disregarded, the support would still be 99.60% for the General Meeting and 99.66% for the Scheme.
General Meeting Results
At the General Meeting, the Item 7 Resolution received 521,174,634 votes in favor, representing 99.88% of the proxies received. Only 379,359 votes were against, accounting for 0.07%, while 289,286 votes were open and usable. There were 143,001 abstentions.
The Item 7 Resolution pertains to the proposed transfer of APM shares held by Excluded Shareholders to Ancora TopCo Ltd and subsequently to Ancora BidCo Pty Ltd, subsidiaries of Madison Dearborn Partners, LLC (MDP). This transaction is a crucial step in the Scheme of Arrangement.
Scheme Meeting Results
The Scheme Meeting saw similar support, with 513,615,943 votes in favor, representing 99.90% of the proxies received. Only 327,274 votes were against, accounting for 0.06%, while 209,017 votes were open and usable. There were 125,626 abstentions.
The Scheme Resolution involves the acquisition of all APM shares not already held by MDP Group Members by Ancora BidCo. This resolution is essential for the implementation of the Scheme, which offers APM shareholders $1.45 per share in cash or a scrip consideration option.
Proxy Votes and Chairperson's Role
The Chairperson of each meeting, Neville Power, voted all open usable proxies in favor of the resolutions. Notably, the proxy results included 318,580,868 shares held by APM's Founder and Executive Chair, Megan Wynne, and her associates. Even if Wynne's votes were disregarded, the resolutions would still have passed with overwhelming support.
Independent Expert's Opinion
Kroll Australia Pty Ltd, the Independent Expert, concluded that the advantages of the Item 7 Transaction and the Scheme outweigh the disadvantages. The expert's report was included in the Scheme Booklet sent to all APM shareholders.
The overwhelming support for the resolutions indicates strong shareholder confidence in APM's strategic direction. The approval of the Item 7 Transaction and the Scheme is expected to positively impact APM's stock price as investors react to the anticipated benefits of the acquisition by Ancora BidCo.
Investor Reaction:
Analysts have noted the strong support as a positive indicator for APM's future prospects. The high percentage of votes in favor reflects investor confidence in the company's management and strategic plans. However, some investors may remain cautious until the final implementation of the Scheme.
Conclusion:
Investors should monitor the final implementation of the Scheme and assess the potential long-term impacts on their portfolios. APM's strategic response to these changes will be crucial in maintaining investor confidence. The next key dates include the Second Court Hearing on 25 September 2024 and the expected implementation date on 10 October 2024.