About to be swallowed by the Canadians! MXG is about to fall to Brookfield Asset Management Inc. after entering into an Implementation Agreement (IA) for a cash consideration of $5.05 per stapled security by way of an off-market takeover offer. Securityholders on the register at June 29 will receive a distribution of 10 cents per security. Roberts Family Nominees (RFN) holding approximately 26% of MXG has entered into arrangements in respect of all its holding
The offer is subject to a number of conditions including obtaining a relevant interest of 50.1% of MXG securities. The IA has certain exclusivity provisions and an obligation to pay a break fee of $20m in certain circumstances. The MXG board supports the offer subject to receiving an independent expert’s report that concludes the Offer is both fair and reasonable and there being no superior offer.
Brookfield has a 4.2% stake in MXG and with RFN’s holding appears to have an unassailable position. There were strong suggestions Mirvac would enter the fray at prices north of $5.30.
At this stage hold and await the independents expert’s report and a possible but unlikely counterbid.
MXG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
