Australia: Coopers fills an application to Australian Takeovers Panel concerning Lion Nathan’s affair

The Australian Takeovers Panel received an application from Coopers Brewery on September 4 requiring a declaration of unacceptable circumstances in what concerns the Lion Nathan's conduct under section 657A of the Corporations Act. This comes after last week Lion Nathan launched a takeover bid for Coopers.

In application it is mentioned that in the Lion Nathan’s letter sent to Coopers' shareholders there is no adequate explanation that some shareholders could receive less than the $260 per share Lion Nathan has offered. Cooper’s application indicates as well that as a result of the pre-emptive rights provisions contained in the Coopers' constitution, shareholders who wish to accept Lion Nathan's offer cannot do so without following those provisions and, as a result, may receive less than the price offered by Lion Nathan.

Last week Coopers won a court battle in the South Australian Supreme Court removing Lion Nathan's pre-emptive rights to buy Coopers' shares under a 1995 agreement. Under that agreement in exchange for the rights Lion Nathan gave back a 19.9 % stake in Coopers.