Ann: Takeovers Panel: PGH Panel Accepts Undertakings, page-2

Pretty much what I expected- that the ability to withdraw will be available only to acceptances from 1 March. Based on 3Y disclosures I think that is 300.4m – 299.5m = 0.9m shares, plus any that trickled in after the Manipur application on 15 March. Thus the TOP order directly affects only about 0.3% of PGH.

However, the more important value is “The undertakings provide that Bennamon will send further disclosure to all Pact Group shareholders by way of a further supplementary bidder’s statement”. Thus even though the offer to withdraw can affect only 0.3%, the bidder must send this corrective notice to ALL remaining holders. This means that NO remaining shareholder can remain unaware of how ruthless Bennamon’s tactics have been and that it has been ticked off by the TOP. One can only hope that this removes any fog over the battleground, and that all the remaining 13% of holders now know exactly how things stand. This should, I hope, dissuade any holdouts who had remained uncertain from deciding to accept.

It will be interesting to see if Bennamon takes this bollocking with humility, and issues a contrite and honest supplementary statement, or whether it will maintain its chutzpah and continue to sail very close to the wind, risking further intervention by the TOP.

The battle isn’t over- PGH shareholders need to remain on their guard. Despite this clarity, dissenters can’t stop minorities from accepting OFF market- but they can prevent Bennamon from buying ON market by making ASX bids at 84.1c or above.

Not advice.