Henry Morgan Ltd (ASX:HML) has entered a binding term sheet to sell two stakes in unlisted assets for $79.16 million.
Both of the company’s stakes in JB Financial Group Pty and Bartholomew Roberts Pty Ltd will be sold to JB Financial.
The sales are conditional to the negotiation and execution of transaction documents and required shareholder approvals.
Cash and convertible note to be received
The consideration for the acquisition is $67.16 million in cash which if not paid within 28 days will attract a 3.72% per annum interest payable annually.
This value will be secured against JB Financial’s assets.
Henry Morgan will also receive a convertible note with a face value of $12 million.
A committee has been established comprising three independent directors to consider the new offer.
Shares last traded in June 2017
Shares in the listed investment company (LIC) Henry Morgan last traded in June 2017.
Shares were suspended after the company was issued an interim stop order by the Australian Securities and Investments Commission (ASIC).
The stop order related to the issue of bonus options.
The listed invest company (LIC) sector of the ASX is busy after L1 Long Short Fund (ASX:LSF) recently completed a $1.33 billion initial public offering (IPO).
The original prospectus for the IPO outlined a minimum of 50 million shares ($100 million raise) and maximum of 300 million shares ($600 million raise).
After overwhelming demand, the listed investment company (LIC) issued a supplementary prospectus to allow it to increase the maximum to 675 million shares or $1.35 billion.
WAM Global Limited (ASX:WGB) is in the process of raising up to $330 million at $2.20 per share as part of an IPO.