Sandon Capital's Compulsory Acquisition of Carbon Conscious Investments Ltd
SNC (SNC) Share Update July 2024 Monday 22nd
Sandon Capital Initiates Compulsory Acquisition of Carbon Conscious Investments
Sandon Capital Investments Limited (ASX: SNC) has announced the commencement of compulsory acquisition of the remaining shares in Carbon Conscious Investments Ltd (CCIL) following their successful takeover bid.
Instant Summary:
- Sandon Capital's takeover offer for CCIL was declared unconditional on 26 June 2024.
- The offer closed on 8 July 2024.
- Sandon Capital now holds more than 90% of CCIL shares.
- Compulsory acquisition price is set at $0.0667 per CCIL share.
- CCIL shareholders will receive a claim form to obtain their cash consideration.
Background on the Takeover
Sandon Capital Investments Limited (SNC) announced an off-market takeover offer for the ordinary shares of Carbon Conscious Investments Ltd (CCIL) on 7 May 2024. The offer was declared unconditional on 26 June 2024 and officially closed on 8 July 2024.
As of the date of the announcement, SNC and its associates have acquired more than 90% of all CCIL shares, enabling them to proceed with the compulsory acquisition of the remaining shares under the Corporations Act 2001 (Cth).
Compulsory Acquisition Process
The compulsory acquisition will be conducted at the same price as the initial offer, which is $0.0667 per CCIL share. Shareholders who have not accepted the offer will receive a letter and an ASIC Form 6021 Notice of Compulsory Acquisition Following a Takeover Bid, detailing the compulsory acquisition procedure and their rights.
Upon completion of the compulsory acquisition process, SNC will pay the cash consideration to CCIL. Shareholders whose shares are compulsorily acquired will be sent a claim form by CCIL, advising them on how to claim their cash consideration.
Shareholder Rights and Next Steps
Under section 661B(1)(c) of the Corporations Act, shareholders have the right to request a written statement of the names and addresses of everyone else who has received this notice. This request must be made within one month after the notice is lodged with ASIC.
Additionally, shareholders have the right to apply to the Court for an order that their securities not be compulsorily acquired. This application must be made within one month after receiving the notice or within 14 days after receiving a statement requested under section 661D of the Act, whichever is later.
The compulsory acquisition marks the final step in Sandon Capital's takeover of Carbon Conscious Investments Ltd. This move consolidates SNC's control over CCIL and is likely to enhance their strategic positioning in the market.
For investors, the acquisition price of $0.0667 per share offers a clear exit strategy for those who have not yet accepted the offer. The acquisition is expected to have a neutral to slightly positive impact on SNC's stock, as it demonstrates their ability to successfully execute strategic acquisitions.
Investor Reaction:
Investors and analysts have generally reacted positively to the news, viewing the compulsory acquisition as a natural progression following the successful takeover bid. Some investors have expressed relief at the clarity and finality provided by the compulsory acquisition process.
Conclusion:
Investors should take note of the compulsory acquisition process and ensure they follow the necessary steps to claim their cash consideration. This acquisition underscores Sandon Capital's strategic growth initiatives and could potentially strengthen their market position.
Stay informed on the latest developments and consider the long-term impacts on your investment strategy.