- Pause of trading announced on the ASX 6:58 am January 19 2021.
- Suspension from official quotation half an hour later at 7:32 am.
- BDO appointed as voluntary administrators.
- Voluntary administrators oversee The Agency Group but not subsidiaries.
Magnolia Equities III Pty Ltd has appointed administrators to pursue outstanding debts from Perth based real estate firm, The Agency Group.
The appointment follows approximately $385,000 in debt, Magnolia in a statement saying:
“Despite raising additional finance and offloading assets, the debt remains outstanding after repeated demands for payment.”
The investment firm came into the fray with an unsolicited bid made as “an alternative” to the then planned issue of $5 million in convertible notes to Perth based Peters Investments.
However, Magnolia was unsuccessful, the Agency announcing to the ASX on 4 January 2021 the takeover bid would not proceed.
Magnolia has voting power of 16.65% in The Agency.
The Agency and Magnolia’s relationship has been turbulent, with a fiery public exchange playing out during December of last year.
The Agency board questioned the credibility of Magnolia’s offer:
“The board of The Agency does not consider that the proposal provides shareholders with enough information to even be considered a credible ‘proposal’ or constitute a legitimate alternative to the proposed issue of $5 million in convertible notes to Peters Investments Pty Ltd,”
The Agency shareholders were overwhelmingly in favour of Perth horse breeder Bob Peters taking the reins, with more than 80% voting for the proposal from Peters Investments.
For now, The Agency Group has suspended trade on the ASX.
No doubt more will unfold in the coming days.
Article updated: it was previously reported “the Financial Review reports [debt] to be $379,000”