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Shareholders in embattled hospitality firm Silver Chef (ASX: SIV) have swatted away a takeover offer from investment firm Next Capital for the second time.
Following Next Capital's second bid at taking over Silver Chef, shareholders in the latter have come out against the proposed deal, choosing instead to side with an alternative recapitalisation offer from fund manager Blue Stamp Company.
Next Capital's proposal involved a $15 million payment for a number of Silver Chef subsidiaries which it called the 'hospitality business' of Silver Chef.
That proposal was the second attempt from Next Capital to acquire all of, or parts of, Silver Chef.
An earlier proposal by Next Capital to acquire all of Silver Chef for $0.70 per share was dumped by the hospitality rental company because of a "groundswell of disdain" from certain shareholders.
A similar response to Next Capital's latest proposal has come from Silver Chef shareholders today. The company says it has received separate communications from two major shareholders, Blue Stamp Company (which owns 19.99 per cent of Silver Chef) and founder Allan English, confirming that they do not support the proposal from Next Capital.
As a result, Silver Chef has determined that if the proposal was put to a general meeting of shareholders it would not be passed.
The company has directed its financiers to focus only on investigating the Blue Stamp Company refinancing proposal and to cease discussions with Next Capital.
"Silver Chef is focussed on progressing the recapitalisation proposal collaboratively with BSC and obtaining financier consent for the BSC Proposal," says Silver Chef.
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Business News Australia
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