Soul Patts and Brickworks trim gains as bondholders raise questions
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More news: Washington H Soul Pattinson and Brickworks were two of the worst performing stocks on the ASX 200 index on Wednesday afternoon, two days after shares in both companies soared on news of their proposed $14 billion merger.
Brickworks shares were down 4.2% to $33.45 at 2:15pm AEST. Soul Patts shares fell 2.6% to $41.58.
Both Brickworks and Soul Patts closed marginally lower on Tuesday having jumped 27.6% and 16.4% respectively on Monday.
This morning, Soul Patts publicly responded to a number of questions from bondholders regarding details of the proposed merger.
Soul Patts responds to bondholders' queries over Brickworks merger
The news: Investment house Washington H Soul Pattinson has responded to a number of questions from the holders of $450 million worth of convertible bonds issued by the company regarding its proposed merger with building products group Brickworks.
The context: In a release to the ASX, Soul Patts said it had received "various questions" from the bondholders, including about a possible change of control of the company, a delisting from the exchange, and details of their conversion and redemption rights.
Soul Patts confirmed there will be a change of control period if the proposed merger is implemented, lasting for 30 calendar days.
If a change of control occurs, the company said, noteholders would be entitled to exercise their conversion rights and redeem the notes.
Soul Patts also said the proposed merger will result in a delisting of the company on the ASX, which likely would not occur until the second half of 2025.
The source: ASX
