Pacific Current wraps up takeover talks
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The news: Boutique funds manager Pacific Current has officially ended takeover talks after failed proposals from GQG and Regal Partners, and may face a first strike vote for its handling of the transaction process. Regal had abandoned its bid after citing poor engagement from Pacific Current's board, while GQG's bid was rejected by River Capital, the firm's biggest shareholder.
The numbers: GQG's bid of $11 per PAC share represented a 22% premium to PAC's current halted price of $9.01. The former acquisition target has a market cap of $464.7 million.
The context: The announcement came on the day of Pacific Current's AGM, with chair Tony Robinson flagging a likely first strike vote on remuneration based on tallied proxy votes, which he attributed to uncertainty around the strategic transaction process. Robinson also noted the departure of independent director Peter Kennedy, and said a board renewal process would follow to find a new independent director with a view to them becoming chair.
What they said: "We believe this (first strike vote) is a product of the uncertainty around the Strategic Process as we have made no material change to remuneration arrangements or disclosure over the last twelve months," Robinson told shareholders on Thursday.
"However, we will ensure that is correct by talking with our shareholders."
The sources: ASX Announcement, Chairman's AGM Address
