OnlineBroncos
Juniors
- Messages
- 16
Hello
News Corp's share offer to take full control of the Brisbane Broncos is unlikely to proceed due to an unusual condition accompanying the bid.
News' subsidiary, BB Sports, had made an offer of 17c per share on Friday as a counter offer to the 16c per share bid that had been previously announced by Magic Millions League Pty Ltd, a John Singleton company.
The condition that accompanied the BB Sports offer was that their bid only stood if the Magic Millions offer went ahead.
Magic Millions have since withdrawn their bid and so the BB Sports bid no longer stands, according to News.
But the Australian Securities and Investments Commission (ASIC) are investigating the two offers to establish whether both companies have acted appropriately.
The Broncos yesterday halted trading pending a clarification of the two bids.
The question ASIC have is whether it is unfair to the Broncos minority shareholders for News to be able to withdraw its offer based on another offer, as accorded by News' own condition.
Magic Millions had not lodged a bidder's statement for their offer so they were not obliged, legally, to go through with it but News' BB Sports had lodged a bidder's statement and so may be unable to withdraw the 17c per share offer.
Regards,
Aron Lal
News Corp's share offer to take full control of the Brisbane Broncos is unlikely to proceed due to an unusual condition accompanying the bid.
News' subsidiary, BB Sports, had made an offer of 17c per share on Friday as a counter offer to the 16c per share bid that had been previously announced by Magic Millions League Pty Ltd, a John Singleton company.
The condition that accompanied the BB Sports offer was that their bid only stood if the Magic Millions offer went ahead.
Magic Millions have since withdrawn their bid and so the BB Sports bid no longer stands, according to News.
But the Australian Securities and Investments Commission (ASIC) are investigating the two offers to establish whether both companies have acted appropriately.
The Broncos yesterday halted trading pending a clarification of the two bids.
The question ASIC have is whether it is unfair to the Broncos minority shareholders for News to be able to withdraw its offer based on another offer, as accorded by News' own condition.
Magic Millions had not lodged a bidder's statement for their offer so they were not obliged, legally, to go through with it but News' BB Sports had lodged a bidder's statement and so may be unable to withdraw the 17c per share offer.
Regards,
Aron Lal
