Hastings' Diversified Utilities Fund receives two takeover offers
Hastings Funds Management is considering two separate takeover offers for all of the outstanding securities of its Diversified Utilities Fund (HDF).
As at close of market 20 July, Pipeline Partners Australia proposed an offer of $2.35 for each HDF security, while APA Group made an implied offer of $2.04 per security, comprised of $0.425 cash and $0.326 APA stapled securities, according to Hastings.
Pipeline announced an initial offer for the fund on 13 July, at which time a sub-committee of independent directors of Hastings unanimously recommended that HDF security holders accept the offer, "subject to there being no superior offer".
HDF chief executive Colin Atkin said the fund is a "very valuable and essential business" for Hastings and added that security holders "can rest assured that HDF remains focused on pursuing the best value outcome".
Pipeline's offer is open to HDF security holders until 7:00pm on 31 August and remains subject to a number of conditions, including 70 per cent acceptance of the offer by HDF security holders, change of control financing arrangements and other regulatory approvals, HDF stated.
Extending its offer to 7:00pm 4 September, the bid from APA will require a 90 per cent acceptance by security holders, along with a change of control financing arrangements and regulatory approvals.
Although the Australian Competition and Consumer Commission (ACCC) has given the green light for APA's offer, Hastings stated that it "continues to unanimously recommend that HDF security holders reject APA's offer".
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