What I meant to say is that for a potential buyer to call for compulsory acquisition they would have to have secured a 90% stake in RAC in the first place. Therefore, a compulsory acquisition might happen, but only after a successful buyout and if holders like @EddyG decide to hold on their dear shares
To develop on this, my current understanding is that, in a typical buyout scenario, is is the buyer who sets the rules: they may request that at least ~ 51% of shareholder accept to sell their individually owned shares at the buyout price (SP+premium). 51% ownership typically allows the buyer to effectively take control of the company via majority voting powers.
Now, If a buyer already own a 10% ownership (e.g. acquired on-market), then they may need a lower threshold (e.g. 41% so that they end up with 51% voting powers). Or reversely, the buyer could also decide that the buyout offer is conditional to no less than 90% acceptance (almost total takeover). Having secured 90% paves the way to a compulsory acquisition of the remaining 10% shares for a "complete buyout" scenario.
However, if the buyer fails to obtain whatever target % they set in their offer, then they would typically have a clause that allows them to call off the buyout (then it's "back to the drawing board").
One final point: in a way you may be right about the 90% number. IMO, and given the nature of the transaction, it is unlikely that a buyer would accept a "partial" buyout with a few shareholders remaining. A typical scenario would see RAC being de-listed from ASX and merged into the buyer. I cannot see that happening while there are still retail shareholders... This is why the 90% ownership threshold may very well apply.
(My understanding only - happy to be corrected).
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$1.89 |
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-0.050(2.58%) |
Mkt cap ! $313.4M |
Open | High | Low | Value | Volume |
$1.95 | $1.95 | $1.84 | $630.2K | 335.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 1000 | $1.89 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.90 | 1400 | 1 |
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No. | Vol. | Price($) |
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2 | 8173 | 1.880 |
1 | 900 | 1.875 |
2 | 4200 | 1.870 |
1 | 900 | 1.865 |
1 | 900 | 1.860 |
Price($) | Vol. | No. |
---|---|---|
1.900 | 4577 | 2 |
1.915 | 235 | 1 |
1.920 | 234 | 1 |
1.945 | 5405 | 1 |
1.950 | 7570 | 1 |
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