Nexus Energy shareholders have rejected Seven Group Holdings’ $26.6 million takeover after the final proxy voting results were confirmed late yesterday.
Nexus said it had received more than 897 million votes in relation to the proposed takeover, which represented about 67 per cent of the company’s issued shares.
More than 50 per cent of shareholders who voted were against the deal and more than 25 per cent of the number of Nexus shares on issue were used to vote down the scheme.
Seven Group needed the support of at least 75 per cent of the capital on issue for the takeover to succeed.
There remains a small window of opportunity for the result to change though with a shareholder meeting set to take place in Melbourne this morning at 9:00am (WST).
“Unless a sufficient number of Nexus shareholders who have voted, or redirected their proxy to vote, against the scheme attend the scheme meeting and change their vote, the statutory majorities required for the scheme to be approved will not be attained,” Nexus said.
The cash-strapped company said that if the scheme was not approved it would need to be placed into voluntary administration.
Seven Group, which has made a 2 cent per share offer, has previously stated that if the takeover is voted down it would not extend bridging finance for Nexus or offer an alternate acquisition proposal.
The Kerry Stokes-led company has also said it would seek to acquire all of Nexus’s shares or assets through the administration process.
Nexus stock has suffered from a spectacular fall since its record high in May 2008 when one share was worth $1.89.
Since then the company’s share price has been on a downward spiral and closed trade last night at 1.3 cents.
