ARN might have to sell off some SCA shares
ARN might be forced to shed some of its recently acquired shares in rival SCA after being found to have acted in “unacceptable circumstances” when purchasing the shares.
ARN bought 14.8 per cent shares in SCA in June via fund manager, Allan Gray. At the time of the purchase, Gray had 21.71 per cent voting power in SCA, as well as 20.04 per cent in ARN.
By selling SCA shares to ARN, Allan Gray’s voting power in SCA jumped to 31.24%, both through directly owned SCA shares, and indirectly – through ARN holdings.
This made the deal “unacceptable” in the eyes of The Takeovers Panel, who have ruled the ARN must vest 6.83% of the shares it acquired in SCA.
ARN has called for a review on these orders.
The network posted the below notice to the ASX.
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