Ausenco Limited (ASX:AAX) today announced that it had received an unsolicited, indicative and non-binding proposal from Resource Capital Fund VI L.P. (RCF VI) to privatise Ausenco by way of a scheme of arrangement (Proposal).
The Proposal is subject to a number of conditions, including due diligence and entry into formal transaction documents. There is no certainty that it will result in a binding proposal that can be put to shareholders.
RCF VI, a shareholder in Ausenco and has recently agreed to acquire the secured loans of Ausenco.
The directors of Ausenco have formed an Independent Board Committee (IBC) comprising Mr George Lloyd (Chair), Mr Peter Gregg and Ms Mary Shafer-Malicki to consider the Proposal.
The IBC believes it is important to assess the Proposal’s terms and engage in discussions with RCF VI before proceeding further or making any recommendation to Ausenco shareholders. The IBC believes this assessment and related discussions may take some time.
IBC Chairman Mr George Lloyd, said the IBC had not yet formed a view on the merits of the Proposal and whether it was in the best interests of shareholders.
"No assurance can be given that the Proposal or any other transaction will proceed," said Mr Lloyd.
Ausenco bank and security facilities acquired by RCF
Ausenco Limited (ASX: AAX) has been notified that Resource Capital Fund VI L.P. (RCF) will replace ANZ and NAB as Ausenco’s sole and primary secured lender.
ANZ and NAB have agreed to the assignment of Ausenco’s existing bank borrowings and the transition of bonding facilities to RCF. RCF has advised that it intends to advance discussions with the company in an effort to favourably extend the terms and conditions of the facility agreements on a basis that is sustainable for the company’s long term success.
Ausenco CEO Zimi Meka said that the company is pleased with RCF’s continuing support and, with the change of lender to RCF, the business and financial uncertainty associated with the secured debt has been significantly reduced.
