CO2 Group completes Oil Mallee takeover

Perth-based CO2 Group Ltd will shortly move to acquire the remaining shares in private eucalyptus planting firm The Oil Mallee Company of Australia Ltd, just a month after launching the takeover offer.

Through its wholly-owned subsidiary Australian Carbon Sinks (ACS), CO2 Group now has a relevant interest in over 90 per cent of shares in OMC, taking it over the threshold for compulsory acquisition.

The takeover offer was launched on July 23 with CO2 offering 32.5 cents each for one OMC share, valuing the shares not owned by CO2 at $700,000.

CO2 already held a 29.9 per cent interest in OMC prior to the takeover launch, and both companies are in a joint venture over carbon sequestrian projects.

The offer was conditional on CO2 obtaining an interest in over 50.1 per cent of OMC shares.

In an announcement today, CO2 said ACS has recently appointed a majority of the directors of the board of OMC.