This is not adviceThe “standard” payment deadline is 6 weeks after the bidder gives ASIC the compulsoryacquisition notice (Corporations Act s 666A(2) (a)). That is the deadline- the biddermay choose to pay earlier, but I doubt if RG would. I don’t know if that notice can be given beforethe scheduled closing date (12 February 2024, unless further extended) if Kinreaches the 90% threshold earlier than 12 Feb.If NOT it would mean that the 6 weeks might run from 12 Feb, rather thanthe earlier date..BUT NB s666A (2) says that the deadline for payment is the latestof the three possible dates under that section: so 6 weeks is the shortest statutorydeadline (unless Kin chooses to pay earlier, but why would it?)
Also NB that if shareholders or the Court make objections tothe compulsory acq process, the deadline could be later than above (see s666A(3))
You have raised an important question: it’s poor that the IndependentBoard Committee of PGH has not provided some comments about such matters, giventhat Kin is closing in on the 90% threshold. These dates are a matter of company law- notadvice or opinion- so PGH itself (company secretary or general counsel) should giveyou this info if you call them.
Please note thevery good request posted from Gizaat 927is today Post #: 71735960
“Please, if your are contemplating selling and can do so, SELL ON MARKET,not into the offer.
1 - You will get paid quicker
2 - You will receive a higher price
3 - You will be helping committed holders
Thankyou “
I agree: IF you wanted to accept the bid but were concerned aboutthe long wait for payment, do as Giz says: sell on the ASX, where you will getpaid within 2 Business Days as usual.Thesettlement money would be sent by your broker to your bank electronically ifthat is your usual arrangement. In contrast, some takeover bids are still paidfor by cheque which can drag out the delay even longer. As Giz says, you shouldalso get a higher price on the ASX than the 84c from accepting the bid.
Giz has summarised the position well.The downside of selling on market is that youwould no longer get the benefit of a higher bid, if Kin or someone else madeone. However, that is only a theoretical risk: very unlikely to happen now, especiallyas Kin said both that it will not increase its bid and it will not sell toanother party.Of course if you don’twant to sell or accept that’s OK, but then IF Kin gets to 90% and initiates theCA process (which it said it would do) you would eventually have to give upyour shares (subject to the objection process) and that would mean a very slow payment,at only 84c.
(20min delay)