29 May 2009

Shareholders approve partial takeover of Rubicon

6:50 am on 29 May 2009

A partial takeover offer for the investment company Rubicon is set to go ahead, now that a majority of shareholders have approved the move - despite a warning last month that independent advice indicated the offer was too low.

United States-based investment firm, Knott Partners wanted to lift its stake by 9% to just over 27%, with an offer of 70 cents per share - that's a 27% premium.

Rubicon said it did not oppose Knott Partners lifting its stake, but the offer price was too low.

The independent valuer Grant Samuel valued Rubicon shares at between $1.15 - $2.26 and warned the takeover bid did not reflect the influence Knott Partners would have over the company.

Conditions of the sale required more than 50% of Rubicon shares, other than those held by Knott and associates, to approve the takeover.

Some 80% of the shares were voted on the offer, with 77% supporting it.

Chief executive officer Luke Moriarty says Knott clearly sees considerably more value in Rubicon than is reflected by its current share price.

The Overseas Investment Office has already approved the partial takeover.