Nexus proxy votes against takeover

At the close of business last Friday, Nexus Energy received about 705 million proxy votes against Seven Group Holdings’ scheme to acquire the company. 

The votes received against the scheme added up to more than 25 per cent of the register by number of Nexus shares, which is higher than the threshold required to block approval.

Unless sufficient Nexus shareholders change their already-lodged proxy vote, the scheme won’t be approved and the company shareholders won’t receive the scheme consideration.

SGH has advised that if Nexus shareholders do not approve the scheme, SGH won’t provide an alternate acquisition or funding proposal to the company.  

SGH also warned that it won’t grant waivers of any repayment obligations, and will rely on its rights and entitlements as senior secured creditor and majority noteholder.

If the scheme isn’t approved, the Nexus board will have to place the company into voluntary administration 

SGH also advised that it will seek to acquire all of Nexus’s shares or its assets through the administration or enforcement process.

Nexus confirmed that no competing, alternative or superior proposals that provide adequate and immediately available funding have been received to date. 

The Nexus board advised all company shareholders to consider their vote in light of the consequences of the scheme not being approved. 

Shareholders have until 11:00am AEST tomorrow to change previously lodged votes.  

Nexus shares last traded at 1.7 cents.