On 15 September 2015, Affinity (ASX:AFJ) announced that it had entered into a scheme implementation deed with Anchorage Childcare Pty Limited to implement a scheme of arrangement for $0.92 cash for each Affinity share. The Anchorage Scheme was conditional on Anchorage announcing to the ASX that it obtained certain financing commitments.
In connection with the Anchorage Scheme, Affinity also entered into a voting deed with G8 Education Limited (ASX:GEM). Certain obligations of G8 under the voting deed were also subject to satisfaction of the Financing Condition.
Anchorage has today confirmed and announced that it has obtained the funding commitments necessary to satisfy the Financing Condition. Now that the Financing Condition has been satisfied, Affinity and Anchorage are now obliged to proceed with the Anchorage Scheme in accordance with the scheme implementation deed between parties.
Affinity directors intend to unanimously recommend the Anchorage Scheme and vote in favour of the Anchorage Scheme, in absence of a superior proposal.
G8 has announced that it intends to vote in favour of the Anchorage Scheme and will not extend the G8 takeovers offers, Affinity directors recommend that investors reject the G8 takeover offers.
Affinity shares dropped after earnings guidance was released in early July, however the following day the stock rebounded after news broke that G8 plan to make a takeover bid to Affinity shareholders at a 29.6 per cent premium.
Author: Imran Valibhoy
Sep 21, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.