COG ends Diverger bid in face of shareholder indifference

Count Limited appears to have been assured an unimpeded run at closing its acquisition of Diverger following the withdrawal by Non-Binding Indicative Offer from COG Financial Services Limited.

COG ran up the white flag in an announcement to the Australian Securities Exchange (ASX) in which it acknowledged that it was unlikely to gain the necessary support for its offer from Diverger’s major shareholders, the most significant of which is HUB24.

HUB24 earlier this month signalled its views by lifting its stake in Diverger from 30.76% to 34.38%.

In its announcement, COG said it continued to believe its offer for Diverger at $1.41 per share was a superior proposal that was more beneficial to Diverger shareholders.

However, COG said it had formed the view that Diverger’s major shareholders who could control the vote on the offer were unlikely to vote in favour of the COG offer.

Count Limited had expressed confidence throughout the period of the COG bid that it would ultimately win through to complete its Diverger acquisition.

The withdrawal of the COG bid saw the Diverger share price declined from a high of $1.25 to $1.11.

COG said that it reserved its rights to re-engage, “including if the situation in respect of Diverger’s major shareholders changes”.