Gunns Ltd has confirmed that it has taken control of more than 50% of Auspine Ltd, giving it “effective control of the company”.
The Gunns-Auspine takeover has been ongoing since March, with Auspine initially rejecting the offer, claiming it undervalued the firm, and Gunns refusing to increase its A$6.15 bid.
However, on August 17, Auspine’s board announced that it was reviewing its recommendation and that shareholders should consider the Gunns offer, with chairman Paul Teissiere stating that a “softening in the Australian share market” was behind the change of tack.
“We are extremely pleased to have acquired the majority interest in Auspine and look forward to receiving further acceptances,” said Gunns chairman John Gay.
“We look forward to working actively with the management and staff to ensure the ongoing success of the business.”
Shareholders who have not sold their stock to Gunns have until August 31 to accept the offer, although major shareholder and managing director, Adrian de Bruin, and Mr Teissiere have stated that they will not be selling their holding in Auspine.
