Aurora Absolute Return Fund - Panel Receives Application [18/06/2019] The Takeovers Panel

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TP19/37
Tuesday, 18 June 2019

Aurora Absolute Return Fund - Panel Receives Application

The Panel has received an application from Aurora Funds Management Limited (Aurora) in relation to the affairs of the Aurora Absolute Return Fund (ASX code: ABW) (ABW). 

Details of the application, as submitted by the applicant, are below.

A sitting Panel has not been appointed at this stage and no decision has been made whether to conduct proceedings.  The Panel makes no comment on the merits of the application.

Details

Aurora submits that it is the responsible entity for ABW.

Aurora submits (among other things) that certain ABW unitholders involved in or otherwise connected with calling a meeting of ABW held on 15 January 2019 are associated by reason of:

  1. entering relevant agreements in relation to the acquisition of units in ABW and
  2. entering voting agreements in relation to co-operating to replace Aurora as responsible entity of ABW at the meeting.

The meeting and resolutions passed at the meeting were recently declared to be invalid in the matter of Aurora Funds Management Limited [2019] NSWSC 630.

Aurora submits that the agreements give the alleged associates voting power in ABW of more than 20%, in contravention of s6061 and the substantial holder notice provisions.

Aurora seeks interim orders including restraining the alleged associates from disposing of ABW units or exercising any voting rights in ABW units pending the outcome of proceedings. Aurora seeks final orders including vesting certain ABW units in ASIC for sale.

Allan Bulman
Director, Takeovers Panel
Level 10, 63 Exhibition Street
Melbourne VIC 3000
Ph: +61 3 9655 3500
takeovers@takeovers.gov.au


1 - Unless otherwise indicated, all statutory references are to the Corporations Act 2001 (Cth), and all terms used in Chapter 6 or 6C have the meaning given in the relevant Chapter (as modified by ASIC)