Aurora’s trust makes off-market bid for KBC

9 January 2020
| By Oksana Patron |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 5 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

17 hours 44 minutes ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 3 days ago