27/11/2017 - 15:54

Firstmac will not extend Goldfields Money offer

27/11/2017 - 15:54

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Brisbane-based Firstmac Holdings said today it would not extend its cash takeover offer for Goldfields Money, which has recommended shareholders support an alternative scrip-based merger with mortgage aggregator Finsure.

Firstmac will not extend Goldfields Money offer
Goldfields Money is headquartered in Kalgoorlie.

Brisbane-based Firstmac Holdings said today it would not extend its cash takeover offer for Goldfields Money, which has recommended shareholders support an alternative scrip-based merger with mortgage aggregator Finsure.

Firstmac is offering $1.27 per share in a bid to gain full ownership of Goldfields Money, after lifting an earlier offer at $1.12 per share.

Its proposal has failed to gain traction, after a report by independent experts EY valued Goldfields shares at between $1.27 and $1.39.

Firstmac holds a 14.9 per cent stake in Goldfields, but this has not changed since its original offer was announced.

The alternative proposal, announced last Thursday, involves a merger of Goldfields and Melbourne-based Finsure.

Under this deal, Goldfields will issue 40.7 million shares to Finsure shareholders, giving the latter group a 63 per cent stake in the merged business.

The new shares will be issued at $1.50 per share, valuing Finsure at $61.1 million and the combined group at $97.5 million.

Firstmac said today its offer delivered certain cash value to Goldfields’ shareholders, in contrast to the uncertainty surrounding the scrip merger.

Its offer is due to close at 4pm on Friday December 1.

Goldfields shares closed 8 cents higher today at $1.38.

Firstmac is being advised by Patersons Securities and King & Wood Mallesons.

Goldfields is being advised by Azure Capital and Lavan, while Finsure is being advised by Aura Capital and Ashurst.

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