The Supreme Court of New South Wales has approved an agreement between two groups of Spicers shareholders that will see the hybrid shareholders take a 68 percent stake in the company.
Separate meetings last week in Sydney of Spicers shareholders and its SPS Trust hybrid unitholders voted overwhelmingly in favour of the deal to break a deadlock with the hybrid shareholders and restore the paper merchant’s capital structure.
In a statement to the ASX yesterday, Spicers announced:
The Trust Company (RE Services) Limited (“Responsible Entity”) was granted judicial advice in relation to the proposed Trust Scheme involving Spicers Limited acquiring the SPS units that it does not already own, in exchange for the issue of Spicers shares as consideration.
Spicers and the Responsible Entity will now progress to complete the implementation of the Trust Scheme.
The SBS hybrid shares have now been suspended from trading on the ASX and new Spicers shares are due to be issued on 27 June, with normal trading of the new shares scheduled to commence on 28 June.
The agreement will see hybrid shareholders take 68.3 percent of the company, with chairman Robert Kaye and non-executive director Michael Barker agreeing to step down and three new directors to be appointed.
Before last week’s vote, Kaye said the company’s “complex capital structure has restricted Spicers’ ability to undertake corporate activities that many listed companies would take for granted.”