The Panel has made interim orders with respect to the application from CMM Hotel & Retail Investments Pty Ltd (CMM) concerning the off-market takeover bid by Bruandwo Pty Ltd (Bruandwo) for all of the fully paid ordinary shares in Australian Leisure & Hospitality Group Limited (ALH).
The Panel has determined to commence proceedings in relation to the application.
By way of interim order, the Panel has ordered that the offer period for Bruandwo’s takeover offer for ordinary shares in ALH be extended until 7.00pm (Melbourne time) on 25 October 2004 or a later date permitted under the Corporations Act 2001 (Cth) which is determined by Bruandwo.
The interim orders remain in effect until further order by the Panel or the conclusion of the proceeding (whichever occurs earlier).
The Panel based its decision on the principle in section 602 of the Corporations Act that shareholders in a takeover bid should have a reasonable period of time to consider the information put before them. The Panel considered that four hours was not sufficient time for shareholders in ALH to consider a potential price increase of almost ten percent, which was foreshadowed in the Bruandwo announcement.
The Panel has not made a decision on CMM’s request that ALH shareholders who have accepted the Bruandwo bid since the announcement by Bruandwo at approxiamtely 2.00 p.m. this afternoon be allowed to withdraw their acceptances. It intends to seek submissions from the parties as to the level of trading in ALH shares and the number and size of acceptances during that period before making a decision.
Director, Takeovers Panel
Level 47, 80 Collins Street
Melbourne, VIC 3000
Ph: +61 3 9655 3501