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ACCC confirms it won’t oppose ASX-listed firm’s takeover bid
The ACCC has issued a statement saying it will not oppose IPH Limited’s proposal to combine with Xenith IP Group Limited, just days after it also decided it wouldn’t oppose a proposed merger between the latter and Qantm Intellectual Property Limited.
Emma Musgrave
The regulator confirmed it wouldn’t oppose IPH’s intentions to combine it and Xenith through a scheme of arrangement under which IPH would acquire all of the remaining stars in Xenith it doesn’t already own. It currently holds a 19.9 per cent share in Xenith.
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This follows an earlier announcement by the ACCC that it wouldn’t oppose a proposed merger between that of Xenith and Qantm. A vote on the proposed merger is understood to be scheduled for this week.
Following last week’s announcement by the ACCC, IPH was quick to issue its own statement saying the offer to acquire remaining shares in Xenith is “superior” to the offer of Xenith merging with Qantm.
“IPH Limited welcomes the announcement by the ACCC that it will not oppose IPH’s proposal to combine IPH with Xenith IP Group Limited (Xenith),” the statement said.
“Since the announcement of the IPH Offer, the value of the proposed merger between Xenith and QANTM Intellectual Property Limited (QANTM Merger) has materially decreased and the value of the IPH offer has increased in value to $2.011
“The announcement by the ACCC that it will not oppose the IPH offer has removed the key regulatory condition to implementing the combination of IPH and Xenith. In IPH’s view removal of this condition confirms that the IPH offer is a superior proposal to the QANTM Merger.
“... Following IPH’s ACCC informal clearance there is now a clear choice for Xenith shareholders. IPH understands that ISS, an independent proxy advisor, has recommended that Xenith shareholders vote against the QANTM merger as Xenith shareholders may consider that the IPH offer is objectively superior to the QANTM Merger, and that CGI Glass Lewis has recommended abstaining on the vote.
“IPH confirms it will be lodging its vote by proxy notice against the QANTM merger for its 19.9 per cent shareholding in Xenith and encourages all Xenith shareholders to do the same.”
