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The company at the heart of what could be considered an attempt to destabilise The Agency Group has now backtracked on plans to bid for shares in the business — despite never gaining shareholder approval for the bid in the first place.
A statement from Magnolia Equities III Pty Limited (Magnolia) said it noted the appointment of BDO as voluntary administrator of The Agency Group.
This latest statement made no mention of the fact that it was Magnolia that was the company behind the purported pursual of an outstanding secured debt by administrators just this morning (19 January 2021).
According to Magnolia, the appointment of BDO “triggers further defeating conditions of Magnolia’s takeover bid” as was set out in the company’s bidder’s statement from 3 January 2021.
“Magnolia considers that the combination of triggered defeating conditions means it is inappropriate for that bid to proceed and has decided that it will rely on the triggered defeating conditions,” it noted.
“Accordingly, Magnolia will not be sending out offers to AU1 shareholders pursuant to its Bidder’s Statement.”
Magnolia’s latest statement flies in the face of its previous arguments and position — prior to the AGM — that there were “a number of important reasons” why shareholders of The Agency should accept Magnolia’s offer.
At the recent AGM in question, shareholders of The Agency overwhelmingly voted for the Peters Proposal to be accepted as the way forward for The Agency’s ownership — effectively dismissing Magnolia’s proposal as an option.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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