Intertain moves to fend-off takeover bid
Board approves adoption of shareholder rights plan to give firm "adequate time" to assess any potential acquisition offer
Intertain has moved to protect itself from an unsolicited takeover bid by adopting a shareholder rights plan which it says will give it “adequate time” to assess any potential acquisition offer.
The plan has been approved by Intertain’s board of directors, but is subject to ratification by shareholders at a special meeting to be held on or before 26 March 2016.
Intertain said the rights plan would provide the board and shareholders with “adequate time” to consider and evaluate any unsolicited takeover bid, plus “identify, develop and negotiate value-enhancing alternatives”.
The firm also said the plan was intended to prevent any person from acquiring more than 20% of its outstanding common shares while the board of directors’ process is ongoing, or from entering into arrangements or relationships that have a similar effect.
Under the plan, any bid for Intertain that meets certain criteria, such as the bid being made by way of a takeover bid circular to shareholders, will be deemed a permitted bid and will not trigger the rights plan.
In the event a takeover bid does not meet the criteria of the rights plan, shareholders other than those involved in the takeover bid will be entitled to purchase additional shares as a significant discount to the market price.
If ratified by shareholders, Intertain said the rights plan would remain in force for the next three years. The operator also said it was not aware of any specific takeover bid being made or contemplated at this time.