Vanteck (VRB) Technology Corp - News Release
Vanteck to make takeover offer for Pinnacle
Vanteck (VRB) Technology Corp VRB
Shares issued 19,770,445 2001-06-08 close $2.85
Monday Jun 11 2001 News Release
Mr. Rodney Duncan reports
Vanteck (VRB) Technology, subject to Australian and Canadian regulatory compliance, has filed with the Australian Stock Exchange (ASX) and with the directors of Pinnacle VRB Ltd., an announcement that the company intends to make a takeover offer for all of the issued shares in Pinnacle. Pinnacle is ASX-listed (ASX symbol PCE) and holds the intellectual property rights to the All Vanadium Redox Battery (VRB) technology subject to certain licences.
Terms
The offer will be one share in Vanteck for every four shares in Pinnacle. Based on the closing price of Vanteck shares on Monday June 11, 2001, of $2.74 (Canadian) (or approximately $3.51 (Australian) using current exchange rates of Canadian/Australian dollar at 78 cents), the offer:
values Pinnacle shares at equivalent to 88 Australian cents; and
represents a premium of 54 per cent to Pinnacle's closing price of 57 Australian cents on the last Pinnacle trading day before this announcement which was Friday, June 8, 2001.
No conditions
The offer will be unconditional.
Current shareholding
Vanteck currently holds approximately 19.9 per cent of Pinnacle shares. Vanteck itself is owned approximately 49 per cent by Federation Group Ltd., a company listed on the ASX, which holds approximately 337,503 shares in Pinnacle in its own right.
The company has retained Freehills, Melbourne as its legal counsel. Vanteck expects to serve its bidder's statement on Pinnacle within the next fortnight. The offer will then remain open for a period of approximately one month, unless extended.
The company will form a committee of its independent directors and a third party fairness opinion will be sought.
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