Locality Planning Energy Holdings Limited - Takeover Panel Decision - 11 July 2024
LOCALITY PLANNING ENERGY HOLDINGS LIMITED (LPE) Share Update July 2024 Thursday 11th
Locality Planning Energy Holdings Panel Declines Declaration Amid Takeover Bid
Locality Planning Energy Holdings Limited (ASX: LPE) has been at the center of a significant takeover bid by River Capital Pty Limited. The Takeover Panel has recently made a crucial decision regarding the circumstances surrounding this bid.
Instant Summary:
- Takeover bid by River Capital for Locality Planning Energy Holdings.
- Panel declines to declare unacceptable circumstances.
- Undertakings offered by directors to address Panel's concerns.
- Directors to accept River Capital's bid if it results in over 50% voting power.
Background of the Takeover Bid
Locality Planning Energy Holdings Limited (LPE) is currently the subject of an off-market takeover bid by River Capital Pty Limited. The bid, announced on 16 April 2024, aims to acquire all shares in Locality that River Capital and its related entities do not already own.
The application for a declaration of unacceptable circumstances was made by River Capital on 28 May 2024. The concerns centered around the acquisition of Locality shares by companies connected with two of LPE's directors during the period between the takeover announcement and the release of Locality's target statement, which included a profit guidance upgrade.
Panel's Decision
The Takeover Panel, consisting of Michael Borsky KC, Marina Kelman, and Karen Phin, examined the circumstances. While they did not find sufficient material to establish an association between the directors and another company, Boutique Capital Pty Ltd, they had concerns about the trading activities.
To address these concerns, the directors offered undertakings. These undertakings require the directors to accept River Capital's bid for the shares acquired during the relevant period if it results in River Capital obtaining voting power in Locality over 50%.
Public Interest and Future Steps
The Panel concluded that declining to make a declaration of unacceptable circumstances was not against the public interest. The reasons for this decision will be published on the Takeover Panel's website in due course.
Additionally, undertakings were signed by members of both the Kolenc Group and the Tilley Group, ensuring that the shares acquired during the specified period will be accepted into River Capital's bid if it results in over 50% voting power.
This decision by the Takeover Panel is significant for both Locality Planning Energy Holdings and River Capital. By addressing the Panel's concerns through undertakings, the directors have potentially smoothed the path for River Capital's takeover bid. If River Capital gains over 50% voting power, it could lead to significant changes in the management and strategic direction of Locality.
Investor Reaction:
Investors and analysts are closely watching the developments. Some investors are optimistic that the resolution of these concerns will lead to a smoother takeover process, while others remain cautious about the potential changes in the company's direction post-takeover.
Conclusion:
Investors should keep a close eye on further announcements from the Takeover Panel and the progress of River Capital's bid. Understanding the implications of these developments will be crucial for making informed investment decisions regarding Locality Planning Energy Holdings Limited.