12th Jun 2014 11:30
LONDON (Alliance News) - Braemar Shipping Services PLC Thursday said it had got the backing of shareholders with a total of 18.8% of its shares, including two institutional shareholders, for its proposed merger with ACM Shipping Group PLC.
The two companies said May 20 that they had agreed to merge to create a combined ship-broking business worth GBP167 million. The deal will see Braemar shareholders take a 72% stake in the new entity and ACM shareholders 28%. Each ACM shareholder will receive two new shares in the new entity and 250 pence in cash for every five ACM shares they currently hold.
In its statement Thursday, Braemar said it had got an irrevocable undertaking from Chelverton Asset Management, which holds a 4.3% stake in the company, to vote in favour of the deal, while Majedie Asset Management, which holds a 6.4% stake, has undertaken to "use reasonable endeavours" to vote to back the deal.
"Accordingly, irrevocable undertakings and an undertaking to vote in favour of the resolutions have now been received by Braemar in respect of 4,069,437 ordinary shares in aggregate, representing 18.8% of the current issued share capital of Braemar," it said.
The merger requires the approval of both companies' shareholders, as well as court approval for the sanction of the scheme, which Braemar has said it expects to be completed by late July.
Braemar expects the deal to boost earnings in the first full financial year after it completes.
Braemar shares were down 2.6% at 522 pence Thursday.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Braemar Shipping