Pinnacle doubles down on Blue Sky management proposal
Written on the 5 November 2018 by David Simmons
The battle to take over Blue Sky Alternative Investments' (ASX: BLA) alternative access fund (ASX: BAF) heated up this morning, with Pinnacle doubling down on its proposal.
Last week, Wilson Asset Management (ASX: WAM) threw its hat in the ring with its own proposal to manage the fund seemingly trumping Pinnacle's original offer.
Now Pinnacle, who intends to establish a new subsidiary management body to be named Alterum, has tweaked its proposal to match Wilson's.
The new proposal has seen Alterum remove performance fees from the agreement and reduce the initial term of the management agreement to five years.
Blue Sky says these amendments bring the Alterum arrangements in line with the terms proposed by Wilson last week. All the other terms of the deal remain unchanged.
BAF's independent non-executive directors say they "welcome" the proposed amendments.
As the fiasco continues, BAF chairman Andrew Champion - who had previously slated his commitment to the Alterum deal with a focus on private markets and multi-management - has agreed not to stand for re-election at the AGM.
Originally, BAF intended the extraordinary general meeting to run on 13 December, but now the company has said that date will need to be reviewed in light of Wilson's proposal.
Shares in BAF are up 1.77 per cent to $0.87 per share at 12.10pm AEDT.
Business News Australia
Author: David Simmons