ARA increase bid price for Cromwell

ARA Asset Management has increased its interest in Cromwell to 24% and increased its offer to acquire a proportion of units in Cromwell to $0.92 per security, up from $0.88125.

As outlined in the Bidder’s Statement on 21 July 2020, the ARA Group may increase its security holding by buying Cromwell securities. As at 21 July 2020 the ARA Group had a relevant interest in 24.07% of Cromwell securities and intends to increase this to 26.69% through their offer.

ARA advised that if the price paid to acquire Cromwell securities is higher than the Offer Price, the consideration payable under the Proportional Offer will be automatically varied to the increased price.

Upon the Proportional Offer opening, if the Offer Price has not been automatically increased to $0.92 per Cromwell security, the ARA Group will increase the Offer Price to $0.92 per Cromwell security and declare the Offer Price final and, in the absence of a competing proposal emerging, will not increase it further.

As Cromwell’s largest securityholder with more than $650 million invested to date, the ARA Group’s interests are aligned with all Cromwell securityholders and it is focused on ensuring sustainable value generation for ALL Cromwell securityholders over the long term.

The ARA Group intends to provide Cromwell securityholders with further details regarding the automatic price variation, if any, via a Supplementary Bidder’s Statement, which will be provided in due course and be despatched to securityholders in conjunction with the original Bidder’s Statement.

Cromwell continues to advise Cromwell securityholders to continue to take no action in relation to ARA’s Proportional Offer. The Cromwell Board considers ARA’s unsolicited and conditional Proportional Offer as an opportunistic attempt by ARA to take control of Cromwell without paying securityholders a premium for control and is cleverly timed to exploit current market dislocation.

Cromwell also believes that an unlawful ‘association’ may have been established between ARA and the Tang Group and is hoping that their Court action for preliminary discovery of certain documents may reveal relevant matters.