ARA Adjust Cromwell Offer

28 September 2020

ARA Asset Management has adjusted its offer price down to take into account the distribution by Cromwell to be paid in November.


ARA's off-market proportional offer on 21 August 2020 to acquire 29% of each Cromwell's securities was outlined in the bidder’s statement dated 17 August 2020 and based on a price of $0.92 cents per security.


On 18 September 2020, Cromwell announced a cash distribution of $0.01875 per security, accordingly, the ARA Offer Price for any Cromwell securityholder who accepts the offer after Wednesday, 30 September 2020 will be reduced by the amount of the September Distribution to $0.90125 cash per Cromwell Security. The proportional offer expires on the 9th October.


Cromwell continue to oppose the offer, however with two of ARA's directors now on the Board of Cromwell, it will be interesting to see what action the group takes to ARA's proposal.