Rival RHG bidder withdraws takeover bid

Company News

Takeover target RHG Limited (ASX:RHG) has again backed a revised bid from the Resimac-led syndicate and noted the rival bidding Pepper Australia-syndicate has now withdrawn from the race. 
 
The home loan lender recommended a sweetened a cash offer of 50.1 cents per share from Resimac and the Australian Mortgage Acquisition Company earlier this month. 
 
RHG’s largest shareholder Cadence Capital Limited (ASX:CDM) and Pepper Australia had earlier insisted their counterproposal of 50.8 cents per share was superior.  
 
The Resimac-led syndicate had claimed Cadence Capital is conflicted as a 17.3 per cent shareholder and would have benefited ahead of other RHG shareholders should its offer have gone through. 
 
Both RHG and Resimac expect to implement the transaction by January 6 with an end date slated for February 28, 2014.
 
Shares in RHG added 1.03 per cent on Friday, ending the week at $0.49 before the RHG announcement was released.
 
RHG reported a net profit of $30.3 million in the 2013 financial year.