The brief $256 million takeover battle involving CIMIC (CIM) and Brisbane based Sedgman (SDM) is heading for resolution after the Takeovers Panel has rejected a request by Sedgman to unwind share purchases made by CIMIC.
Sedgman had alleged that CIMIC (the old Leighton Holdings) did not provide enough information about its proposed $1.07-a-share cash offer in its initial bidder’s statement, released on January 13, including how it would treat dividends and franking credits.
But the Panel said yesterday in a brief statement that CIMIC’s second supplementary bidders statement issued on January 28 “sufficiently dealt with the issues raised in Sedgman’s application”.
CIMIC’s revised statement explained that the construction group would deduct any dividends paid from the cash offer price, but that it would not deduct the value of franking credits.
SDM 1Y – CIMIC set to secure Sedgman?
“The Panel considered that the second supplementary bidder’s statement sufficiently dealt with the issues raised in Sedgman’s application and decided not to make a declaration of unacceptable circumstances.
"The Panel considered that it is not against the public interest to decline to make a declaration of unacceptable circumstances" the Panel’s statement read in part.
Sedgman has said it plans to announce a fully franked interim dividend at its half-year result on February 26, as well as a fully franked special dividend.
Sedgman had asked the panel to unwind share purchases CIMIC has made since launching the takeover bid in a bid to reduce its stake.
But with 45% of Sedgman controlled by CIMIC (which started with a 37% stake), the bid might have succeeded by then and any actions by the Sedgman board could be reversed or blocked by CIMIC.
Sedgman shares closed at $1.07 yesterday, so the market reckons the game is up and the bid will succeed in the next few days.
