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
The alternative investment manager has signalled its intentions to repackage an existing fund into a second private equity vehicle, targeting both listed and unlisted opportunities.
The acquisition of Mason Stevens by Adamantem Capital has reached completion, as the wealth platform looks to increase investment into its services for Australian wealth practices.
Platinum Asset Management and VanEck have both announced name changes to multiple of their ETFs to clarify their complexity.
Active ETFs are gaining traction in Asia-Pacific as wealth managers seek to blend the low-cost fees of passive with active management.
