Geoff Wilson’s WAM to exit CIE takeover
Contango Income Generator Limited (CIE) and CIE’s investment manager Contango Asset Management (CGA) have been in discussion with WAM Capital Limited (WAM) in relation to its current offer to acquire all issues shares in CIE where the CIE’ board would recommend that:
- Shareholders who want to remain invested in the new WCM Quality Global Growth Long Short strategy should reject the WAM offer; and
- Shareholders who do not want to remain invested in the new WCM Quality Global Growth Long Short strategy should accept the WAM offer
The offer, which is currently intended to close on 13 November and is not intended to be extended, would see the CIE board restructure which would include:
- A change in the name of the company from Contango Income Generator Limited to WCM Global Long Short Limited;
- A selective buy-back of CIE shares held by WAM;
- If the selective buy-back is not approved, an equal access buy-back of CIE shares at NTA less transaction costs;
- A renounceable one-for-one rights offer with a free attaching option, which would be available to CIE shareholders on the register following the close of the WAM offer and after the buyback referred to above;
- An offer for new CIE shares to members of the public; and
- A change in the composition of the board of the company – in which respect, Don Clarke had tendered his resignation and Andrew Meakin was appointed to the board of the company.
Contago said in an announcement to the Australian Securities Exchange (ASX) that the restructure was designed to create a reinvigorated listed investment company (LIC) with a larger capital and shareholder base and the costs of the rights offer and the public offer would be borne by CIE, but would not be considered in calculating the NTA per share under the buy-back.
AUTHOR
Oksana Patron
Recommended for you
After introducing its first active ETF to the Australian market earlier this year, BlackRock is now preparing to launch its first actively managed, income-focused ETF by the end of November.
Milford Australia has welcomed two new funds to market, driven by advisers’ need for more liquid, transparent credit solutions that meet their strong appetite for fixed income solutions.
Perennial Partners has entered into a binding agreement to take a 50 per cent stake in Balmoral Investors and appoint it as the manager of Perennial's microcap strategy.
A growing trend of factor investing in ETFs has seen the rise of smart beta or factor ETFs, but Stockspot has warned that these funds likely won’t deliver as expected and could cost investors more long-term.
