2 Cheap Cars takeover bid
Sena & Co Ltd wants to acquire all fully paid ordinary shares in 2 Cheap Cars at 80 cents it doesn’t already own after lodging a notice to so under the Takeovers Code.
It already owns and controls 75.9 per cent of ordinary shares in the target company as of the date of the offer on July 13.
Sena & Co wholly owned by members of the Sena Family Trust, of which David Sena – 2 Cheap Cars’ chief executive officer and director – is a trustee and beneficiary.
Under the Takeovers Code, Sena & Co has between 10 and 20 working days from July 13 to decide whether to proceed with a formal offer. If it doesn’t, the takeover notice will lapse.
A committee comprising of Gordon Shaw and Michael Stiassny, independent directors of 2 Cheap Cars, has been established to oversee the process and respond to any formal offer.
Craigs Investment Partners has been appointed as financial adviser, and MinterEllisonRuddWatts as the legal adviser.
2 Cheap Cars has appointed Simmons Corporate Finance as the independent adviser to prepare a report on the merits of the proposed offer.
The target company and Sena & Co have entered into a costs-reimbursement agreement under which Sena & Co will pay back certain costs incurred by 2 Cheap Cars and its directors in relation to the proposed takeover, including costs incurred before the takeover notice was issues.
If a formal takeover offer is made, 2 Cheap Cars will issue a target company statement alongside an offer document, which include the independent adviser’s report and takeover committee’s recommendation to shareholders.
