Tuesday 08 November 2016 06:19 PM
Airwork sale extended as RIFA seeks regulator approval
By Edwin Mitson
Nov. 8 (BusinessDesk) - Airwork Holdings, the Auckland-based aircraft services business, has received a second takeover notice for the proposed partial takeover by Zhejiang Rifa Holding Group in a move that gives the Chinese group more time to get the backing of regulators and other third parties before a formal offer is made.
In October, the Chinese company announced it had entered a takeover lock-up deed with the major shareholders at $5.40 per share.
Under the pre-bid deed, RIFA has agreed to make a conditional partial takeover offer for 75 percent of Airwork’s ordinary shares. Interests associated with non-executive director Hugh Jones hold 54 percent the shares on issue, so the deal can proceed regardless of whether any other shareholders accept because RIFA is seeking a minimum of 50.1 percent.
The company has appointed Grant Samuel to prepare an independent appraisal of the offer for shareholders.
Any deal requires the go-ahead from the Overseas Investment Office, the administrative committee of the Shanghai Pilot Free Trade Zone and what Airwork last month termed the approval of "various aviation regulators".
On Nov. 3, Airwork said it had made "good progress" in obtaining the third party approvals provided for in the lock-up deed between RIFA and Hugh Jones interests.
The shares were unchanged at $4.85 and have risen by 24.3 percent since the start of the year. They peaked at $5.05 after the announcement of the buyout.