As expected Nexus Energy (NXS) went into administration last night after shareholders rejected the 2 cents a share, $26.6 million bid from Kerry Stokes’ Seven Group Holdings (SVW).
Around 58% of Nexus proxy votes were against the deal with the Stokes company.
The shares were also suspended from the ASX, according to a statement filed with the ASX.
"As the Scheme Resolution has not been approved by Nexus shareholders, and no alternate proposal has been received, the Nexus board of directors have resolved to appoint Matthew Caddy, Tony McGrath and Jason Preston of McGrathNicol as joint and several administrators of Nexus Energy Limited," directors said in the statement to the ASX.
The statement also said that the nine subsidiaries of Nexus have not been placed into administration.
"The boards of directors of the Nexus Subsidiaries will be working with the Voluntary Administrators and SVW to put in place funding arrangements to enable the Longtom, Crux and Echuca Shoals projects to continue with minimal interruption," directors said.
"The Board resolved to enter into the Scheme following an extensive strategic review process that included consideration of a sell down of Longtom, Crux and Echuca Shoals, a whole of company transaction and alternative funding and refinancing solutions.
"The key challenge has been the high gearing and significant capital commitments to support the asset growth plans. We are extremely disappointed that despite running a comprehensive process we were not able to secure a more favourable outcome for shareholders,” directors said.
At the meeting in Melbourne, Nexus managing director Lucio Della Martina told shareholders the board had carried out an "extensive" review of potential options for asset sales and funding but had not been able to secure an alternative proposal to Seven’s offer, which has been deemed "fair and reasonable" by an independent expert.
But many investors at yesterday’s meeting in Melbourne were angry at the low, 2 cents a share offer, and at the role played by former chairman Don Voelte, who is also chief executive of Seven Group.
The meeting failed to approve the deal with Seven Group Holdings because not enough votes were cast in support.
Mr Della Martina urged shareholders to vote for the deal, but many were not listening.
Nexus shares are now worthless – they were last quoted at 1.3 cents before trading was halted ahead of yesterday’s meeting.
