Takeovers Panel declines to conduct proceedings on Transurban
The Takeovers Panel has declined to conduct proceedings on an application made by CP2 Limited last week requesting Transurban Group (TCL) to not be allowed to conduct a $542.3 million capital raising. The Panel said it did not consider the rights issue would have a material effect on the control of Transurban and accordingly there was no reasonable prospect that it would declare the circumstances unacceptable.
Earlier this month Transurban rejected two offers from a consortium of its largest shareholders including CP2, the Canadian Pension Plan Investment Board and the Ontario Teachers Pension Plan.
Instead Transurban announced that it would finance the acquisition of the Lane Cove Tunnel in Sydney partly through a fully underwritten accelerated renounceable 1 for 11 rights issue.
The second proposal was conditional on the rights issue being discontinued but was conditional, among other things, on board approval and funding.
CP2 sought interim orders restraining Transurban from proceeding with the rights issue or allotting shares on exercise of the rights.
The Takeovers Panel said it considered that the proposals did not constitute genuine potential offers such as to make the rights issue a frustrating action and, even if they did, the actions of the Transurban board did not constitute a frustrating action.
As at 1107 AEST, Transurban shares were down 6c to $4.31.
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