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ISCOVER
Resimac has applied to the Takeovers Panel to prevent Cadence Capital Limited from voting for the Pepper Proposal for the former RAMS loanbook, RHG.
After Pepper made an offer for RHG with the support of the largest institutional shareholder, Cadence Capital Limited, Resimac announced yesterday that the company would appeal to the Takeovers Panel due to Cadence’s ‘conflict of interests’.
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According to a press release from Resimac, if the Pepper offer was to be selected all shareholders other than those of Cadence would lose.
The application hopes to “prevent Cadence from voting against the Resimac Offer to ensure that all other RHG shareholders get a fair opportunity to consider the superior Resimac Offer.”
“And to release Cadence from its commitments to Pepper in relation to support of the Pepper Proposal, given that Cadence has a conflict of interest based on significant collateral benefits it exclusively would receive under the Pepper Proposal.”
Under the Pepper proposal, Cadence is the only shareholder to receive all cash consideration.
“Resimac… along with many RHG shareholders who have contacted us, believe that, under the Pepper Proposal, Cadence would benefit at the expense of all other RHG shareholders,” the press release said.
