Jan 18 (BusinessDesk) - New Image Group’s chairman Graeme Clegg is moving to take the colostrum-based health tonic maker private, saying a sharemarket listing no longer makes sense for the company.
The company has received a notice of a takeover at 26 cents a share from New Image Trustee Ltd, a company controlled by Mr Clegg, who already owns just under 70 percent of the company.
The company was originally listed as Selector Group 13 years ago. Clegg says in the takeover documents that a listing on the New Zealand stock exchange no longer made sense.
“In simple terms, New Image has no need for further capital, is too small, has too few shareholders, and its shares traded too infrequently for it to remain as a listed vehicle,” he says.
The offer, which closes March 29, comes after Clegg in October announced the purchase of a 10.1 percent stake in the company held by HWM (NZ), formerly known as Huljich Wealth Management, in two steps to avoid having to make a full takeover.
Clegg, who held 58.33 percent of the company at the time, was paying $6.1 million, or 26 cents a share, in two equal tranches.
The notice of an offer to remaining shareholders announced today is for cash and is conditional on receiving 90 percent acceptances, the levels which allows compulsory acquisition of remaining shares.
Exotic-Corp, which owns 26.65 percent, has indicated it will accept the offer.