Aurora’s trust makes off-market bid for KBC
Aurora Funds Management has announced that its Dividend Income Trust (ADIT) has announced plans to make an off-market takeover bid for Keybridge Capital (KBC) at an all cash bid price of 6.6 cents for each ordinary share.
The firm said in the announcement made to the Australian Securities Exchange (ASX) that the offer represented an 8.9% premium to KBC’s net tangible assets (NTA) and a premium of 1.5% to the take offer announced earlier by WAM Active Limited.
Following this, the bid would provide an opportunity for KBC shareholders to sell their shares off-market at a premium to KBC’s most recent NTA and WAM Active’s takeover bid.
Also, ADIT would enter into funding agreements with HHY Fund and Aurora Fortitude Absolute Return Fund (AFARF) which, if necessary, would ensure the cash requirements of the bid to be satisfied, the firm said.
According to Aurora FM, the bid would strengthen ADIT’s asset base by providing it with the potential for future capital growth.
“The increased asset base would also provide an improved ability to grow the investment portfolio returns after costs on a measured and sustainable basis leading to enhanced distributions growth without significant increased risk,” the firm said in the announcement.
“Further, the opportunity to gain access to the franking credits within Keybridge would be valuable for ADIT unitholders.”
The firm said it would anticipate that additional benefits such as an economy of scale and therefore enlarged entity’s capacity to reduce the management expense ratios currently charged to ADIT unit holders as well as synergies over the medium-term including administration and overhead expenses.
AUTHOR
Oksana Patron
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
