something happening?, page-12

Market update & Director’s resignation
RHG wishes to update shareholders as to the status of negotiations regarding a possible sale of the company’s assets.
As disclosed to the market on February 14, the offer that was under consideration was expected to deliver a price below the then prevailing share price after taking into account the full value of franking credits. The Board felt this offer was inadequate and was unlikely to obtain shareholder support.
The Board feels it is important for shareholders to be aware that whilst discussions are continuing, the prospective offeror has been advised that the indicative offer that had been provided was inadequate and has been rejected. In addition to the normal requirements for a satisfactory transaction structure and major shareholder support, we have also provided the offeror with guidance as to the level of offer that would be considered sufficient to warrant the board submitting it to all shareholders for consideration.
The Board wishes to emphasise that it is not seeking to sell the company or its assets which continue to perform well and that these current negotiations are in response to an unsolicited approach.
At this stage, no agreement on price or structure has been reached and there is significant uncertainty as to whether a transaction acceptable to the Board will be provided or concluded.
Resignation of director
The Board also wishes to advise that Mr Trevor Loewensohn has today resigned.
Mr Loewensohn said “The Company has done an excellent job in restructuring the company’s warehouses and optimising the wind down of the company’s assets.
In the context of what is now a small investment for Alceon and the strong possibility that the status quo which is supported by a large proportion of the shareholder base will prevail I felt this is a good time for me to step down.
I wish the company all the best in its future endeavours”.