The Market Herald faces challenge by shareholder via Takeovers Panel
The Australian Takeovers Panel is reviewing an application from a shareholder of The Market Herald (TMH), which suggested the booklet for the company’s recent entitlement offer is “materially misleading and/or deceptive”.
TMH announced the entitlement offer last month in a bid to raise funds and pay down debts related to the purchase of Gumtree, Carsguide and Autotrader.
It involved offering new shares with a 15 per cent discount rate for shareholders, aiming to raise approximately $15.52 million. TMH issued a booklet earlier this month in relation to the offer.
Shareholder UIL Limited, which was the applicant, submitted to the Takeovers Panel that the booklet was misleading on the effect of ” the sub-underwriting, the allocation of the shortfall and voting power of related party sub-underwriters”.
It also failed to “disclose the association” between Gavin Argyle and his father David Argyle, two of TMH’s substantial shareholders, and “the effect of the 2023 entitlement offer on control of TMH”.
UIL Limited sought the suspension of the entitlement offer until corrective disclosure is made, and the alleged associates restrained from exercising any voting or other rights attached to their TMH shares or acquiring any further TMH shares, including through the 2023 entitlement offer.
In an ASX announcement, TMH acknowledged the application and said it’s seeking legal advice regarding a response. However, the entitlement offer timeline will remain unchanged at this stage.
TMH currently trades at $0.35 and has a market capitalisation of $111.9 million.
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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