Bolton's Keybridge Capital receives yet another takeover offer

8 January 2020, Written by David Simmons

Bolton's Keybridge Capital receives yet another takeover offer

It seems like everyone wants a slice of Keybridge Capital (ASX: KBC), with Australian alternative asset manager Aurora Funds Management throwing its hat in the ring for control of the company.

Aurora's Dividend Income Trust (ADIT) announced this afternoon that it intends to make an off-market takeover bid at 6.6c per share to take control of the investment and financial services group.

This bid represents an 8.9 per cent premium to Keybridge's most recent net tangible asset backing of 6.06 cents per share as at 31 October 2019, and a premium of 1.5 per cent to the takeover offer currently on the table from Wilson Asset Management fund WAM Active (ASX: WAA).

It is expected that ADIT will lodge its bidder's statement with ASIC, the ASX, and Keybridge sometime in mid-January, with the bid to open later this month and close sometime in late February.

"The Bid will strengthen ADIT's asset base and Aurora considers the Bid price will provide ADIT with the potential for future capital growth," says Aurora.

"By virtue of the benefits of economies of scale, the enlarged entity also has the capacity to reduce the management expense ratios currently charged to ADIT unitholders on an enduring basis as the fixed costs will be spread over a large unitholder base."

"It is also reasonable to anticipate the potential for operating synergies over the medium term including in relation to administration and overhead expenses."

ADIT's offer is hot on the heels of WAM Active's lodgement of its bidder's statement for its attempts to take over Keybridge.

WAM Active's offer is 6.5c per KBC share, and the offer will close on 3 February 2020 unless extended.

The offer was lowered in mid-December 2019 with Wilson citing problems such as board uncertainty, excessive operating expenses and significant corporate governance issues.

The Sydney-based fund intends to buy at least 50.1 per cent of Keybridge, which would be worth $5.5 million at the new offer price.

In response to ADIT's notice of intention Keybridge says it is considering the notice in conjunction with the WAM Active bid.

On Monday Keybridge made an announcement to the ASX telling shareholders to take no action until the company is able to complete a review of WAM Active's offer, which is expected to be released on Friday 17th January 2020.

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Author: David Simmons

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