The Takeovers Panel advises that it has received an application dated 14 August 2006 from Sedimentary Holdings Ltd in relation to the scrip takeover bid by AuSelect Ltd for all the ordinary shares in Sedimentary, which was sent to Sedimentary shareholders on 1 August 2006 and declared free of defeating conditions on 11 August 2006.
Sedimentary submits that:
- unacceptable circumstances exist in relation to a pre-bid agreement between AuSelect and Lion Selection Group Limited, and that Lion and AuSelect effectively are parties to a joint bid;
- AuSelect freeing its offers from all defeating conditions resulted in profound changes to AuSelect's Takeover Bid, requiring additional disclosure concerning AuSelect's intentions etc below 50.1% ownership of Sedimentary and sufficient time for Sedimentary shareholders to assimilate the new information.
Sedimentary seeks a declaration of unacceptable circumstances and interim and final orders requiring, subject to ASIC's consent, that AuSelect's offer be withdrawn or, in the alternative, final orders that (amongst other things) AuSelect dispatch to Sedimentary shareholders a supplementary bidder's statement which remedies the unacceptable circumstances.
The Panel has not decided whether to conduct proceedings in relation to the Application and makes no comment on the merits of the Application.
The President of the Panel is appointing a Panel to consider the Application.
Director, Takeovers Panel
Level 47, 80 Collins Street
Melbourne VIC 3000
Ph: +61 3 9655 3501