Axiom's Eumundi takeover bid lapses

The takeover bid from Perth-based property developer Axiom Properties Ltd for Queensland's Eumundi Group Ltd has officially lapsed, after the company held only 16.9 per cent of the developer when the bid closed on Monday.

The full text of an Eumundi announcement is pasted below

The Board of Eumundi Group Limited ("Eumundi") note that the off market takeover bid by Axiom Properties Limited ("Axiom") for Eumundi closed on 5pm 4 June 2007.

Axiom announced on 5 June 2007 that it and its associates held a relevant interest 16.92% interest in Eumundi and as such compulsory acquisition of the remaining shares in Eumundi could not and would not proceed. Axiom stated that such notification was provided as a result of the expiry of the takeover offer.

One of the conditions of the bid was that at the end of the offer period, Axiom held a relevant interest in more than 50.1% (by number) of Eumundi Shares. Axiom, in its Bidder's Statement, had stated that it did not intend to waive this minimum acceptance condition.

Accordingly, as this minimum acceptance condition was not satisfied at the end of the offer period, the Board understands that the conditions of Axiom's offer were not satisfied nor waived at the end of the offer period and as such the Axiom offer lapsed with effect on 5pm 4 June 2007.

The Board advises that as a result of Axiom's offer not proceeding, all Eumundi shareholders, including those shareholders who accepted Axiom's offer, will continue as Eumundi shareholders.