Lark Distillery holders rebuff $AWY

$AWY/Australian Whisky Holdings is struggling in its bid to gain control of Lark Distillery.

The group has made an all-scrip offer of 10,333 $AWY shares for every Lark share. This values Lark at $444 a share...or $18.33m for the whole business.

It would seem $AWY 's offer has won over just one holder with 116 shares - 2.81% of Lark capital.

Some 30 of Lark's 32 shareholders have evidently decided to reject $AWY's offer, now extended to run from Jan 30 to Feb 28.

These holders include Lark chairman Chris Malcolm. He owns a key stake of 6.8%.

Awkward?

Malcolm seems to be awkwardly placed.

On December 23, $AWY claimed that Malcolm had advised in writing that he would accept the offer.

Malcolm, ex-CEO of Clark Rubber, is the man $AWY has selected to run the acquisition of Nant Estate and Nant Distillery.

Why is Malcolm - slotted to become AWY's new CEO - deferring?

Has he fallen out with $AWY chairman and chief shareholder Terry Cuthbertson?

And why hasn't top Tasmanian money man Tony Shadforth accepted the $AWY offer?

Of course, there could be a key reason $AWY is being rebuffed. That reason is money.

Negotiable?

It would seem Chris Malcolm is leading resistance. And it would seem that he - and holders such as Shadforth, Bill Lark, Lynn Lark and Kristy Booth - want more.

But how much more? Is Cuthbertson negotiable? Can $AWY afford more? A cash sweetener perhaps?

Ironically, if Cuthbertson agrees to modify the offer the value of the Lark business will rise.

And the key beneficiary of that lift in value will be $AWY.

Why? Because $AWY is by far Lark's biggest holder with 41.29%.