2 Cheap clarifies deal details
2 Cheap Cars has issued a clarification regarding the New Zealand Shareholders’ Association (NZSA) endorsing a major shareholder transaction.
The company states, in an update issued to the NZX on September 13, that it has received a request from the Takeovers Panel for clarification of the outcome of David Sena’s engagement with the NZSA as announced to the market on September 11.
Under the proposed deal, Sena will buy about 30 per cent of the company’s shares from fellow founder Eugene Williams to take his holding in 2 Cheap Cars to about 76 per cent.
“For avoidance of doubt, what Sena has stated he will do following discussions with the NZSA is non-binding and is not contractually enforceable by the NZSA, but it is a clear public statement of intention by Sena that was proactively given in good faith,” states the market update authorised by chairman Michael Stiassny, pictured.
“Sena has decided to adhere to three specific restrictions. He will not utilise the ‘creep’ provisions of the Takeovers Code for a period of three years from the date of the share acquisition.
“And whilst 2CC is a listed company, he will maintain a majority of independent directors on the board, and enable consultation with minority shareholders and their representatives prior to the appointment of future independent directors.
“With regard to the third point, the precise consultation mechanism with minority shareholders and their representatives is yet to be determined with the NZSA, but will be announced to the market at the appropriate time.”
2 Cheap Cars’ annual shareholders meeting, which will vote on Sena’s takeover bid, is being held at Ellerslie Event Centre, Auckland, and online at https://meetnow.global/nz on September 28 from 10am.
