The Agency Group secures funds from racing identity

A bid for sharemarket-listed The Agency Group Australia by a company associated with former director Mitchell Atkins appears to have been torpedoed after shareholders voted this week to issue $5 million in convertible notes to the private company of racing identity Bob Peters.

The funding was used to reduce to $5 million a long-standing debt facility with Macquarie Bank, now payable by early 2023, and to pay out a $750,000 loan from the private company of former Pilbara Minerals chair Tony Leibowitz.

Under the terms of the bid from Mr Atkins' Magnolia Equities III, the acceptance by The Agency Group shareholders of the funds from Mr Peters defeated the offer.

Mr Atkins departed the Agency in 2020 when Magnolia injected $5.6 million into the real estate group by way of a share placement.

Magnolia's bid was at 4c per share. The Agency Group last traded at 5.1c before a trading halt was put in place in December.

The Agency Group, which has a market cap of about $15 million, previously said the board was sceptical of Magnolia’s ability to raise the money required to complete the takeover (assuming an all-cash deal) and arrange for a replacement of the Macquarie Bank facility.

This morning's announcement follows The Agency Group's sale of its WA rent roll business to Managex Funds Management, controlled by John Poynton and Kim Slatyer, for $3.6 million in September.

The trading halt on The Agency Group's shares was lifted this morning.