Doubts cast over Seven takeover of Nexus

Company News

by Lelde Smitts

More doubts have been cast over Seven Group Holdings Limited's (ASX:SVW) bid to buy Nexus Energy Limited (ASX:NXS) amid ongoing opposition from some vocal shareholders.  
 
Nexus shareholders will meet this Thursday to vote on the deal under which Seven is proposing to buy the company for 2 cents per share. 
 
Ahead of the meeting Nexus has again warned it will need to go into voluntary administration if the takeover fails to get shareholder backing or if the company fails to secure more funds. 
 
Based on votes already received Nexus has warned unless a sufficient number of proxy votes already lodged are changed the scheme will not be approved. 
 
A small group of Nexus shareholders who own a significant portion of the company’s shares are understood to be voting down the deal because of the lower than expected offer price.  
 
Shares in Seven Group Holdings lost 0.26 per cent on Friday to end the week at $7.78.
 
Shares in Nexus Energy last traded at $0.017 and have plunged 75 per cent this year.   
 
Seven Group Holdings reported a net profit of $265 million in the first half of the 2014 financial year.

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