- The Takeovers Panel has today declined Magnolia's request for a review.
- The initial application for review followed a Federal Court hearing on 1 February.
- A review Panel agreed that there "was no reasonable prospect that it would make a declaration of unacceptable circumstances."
An ongoing stoush between The Agency and Magnolia Equities III Pty Ltd lead to a Federal Court hearing.
Following the hearing, on 2 February 2021, Magnolia made an application to the Takeovers Panel for a review.
Today, the Takeovers Panel said in a media release that the application had been declined.
It was stated that “the review Panel concluded … that there was no reasonable prospect that it would make a declaration of unacceptable circumstances. Accordingly, the review panel declined to conduct proceedings.”
The Takeovers Panel said a reason for the decision included:
“… the threshold set for a Panel to question the correctness of an expert’s report is high and similarly for any further opinion expressed by an expert in response to concerns raised on the deficiency of information. The review Panel considered that the matters raised in the review did not get over the threshold.”
It was also noted by the Panel that “As the review proceedings are now ended, the undertaking given by Peters Investments ceases”.
A quick recap of the events leading up to the Review Panel:
- Magnolia stated its intent to make a cash takeover for 100% of The Agency.
- AGM postponement from 23 December 2020 to 30 December 2020.
- Further postponement of AGM to 4 January 2021.
- Magnolia’s Bidder’s Statement regarding a bid for The Agency was released to the ASX, dated 3 January 2021.
- “Purported” appointment of administrators was made by MCL 105 Pty Ltd (Magnolia) on 19 January 2021 over an approximately $385,000 debt.
- Less than 24 hours later Federal Court approved an injunction on the appointment of administrators.
For more information and the original media release, please see the Takeovers Panel website.