Minter Ellison has acted for Australian Laboratory Services Ltd, a subsidiary of Campbell Brothers Limited, in a hostile cash and scrip takeover of the listed Ammtec Limited for $164 million.
Minters partner Gary Goldman and senior associate Stephen Knight led the deal, while Steinepreis Paganin advised Ammtec Limited
This bid was initially vigorously rejected by the target, but through a combination of strategies, Campbell Brothers was ultimately able to secure a recommendation from the Ammtec board.
According to Goldman, some of these strategies included offering flexible options to institutional shareholders to secure a significant pre-bid stake; offering to make the bid unconditional at a 30 per cent level which would have given a significant degree of influence given the widely held stock; and managing the hedge fund interest in the arbitrage between the market price and value of the scrip consideration.
"There was never any guarantee that the strategy would secure a board recommendation. However, as the Campbell Brothers bid for Ammtec shows, there are innovative ways that can break a log jam and shift the momentum sufficiently to secure a positive recommendation," he said.
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