Central takeover fails

Central Chairman Robert Hubbard.

Central Chairman Robert Hubbard.

Despite gaining the majority of votes, the resolution to approve Macquarie Group’s takeover of Central Petroleum has failed as the threshold wasn’t met.

Collectively, 26.5 per cent of shareholders representing 64.1 per cent of shares on issue participated in the vote, however, for the scheme resolution to pass more than 50 per cent of shareholders and 75 per cent of shares voting and eligible to vote had to vote in favour.

67.6 per cent of the shareholders who voted were in favour, while 32.4 per cent were against, with 67.2 per cent of shares in favour and 32.8 per cent against.

This wasn’t enough to meet the threshold of 75 per cent, meaning the scheme resolution wasn’t passed.

Commenting on the result, Central’s Chairman Robert Hubbard said “Whilst I am comforted that the majority of shareholders and shares supported the resolution, it would be disingenuous of me to say that I am disappointed with this outcome since we recommended in favour of the scheme.”

Macquarie increased its original $75 million bid for Central to $87 million following the completion of due diligence, and offered AU$0.20 per share plus a Contingent Value Note (CVN) to takeover Central.

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