As part of its 18th August A$4.75/share Scheme Offer for Reliance Worldwide (RWC AU), a manufacturer of plumbing components, Brookfield afforded Reliance with a “go shop” provision for 30 days.
That provision, now concluded, was likely put in place to placate AusSuper, which has recently flexed its muscles in takeover situations. AusSuper now holds 18.07% of shares out.
The Scheme Booklet is now out, with a 4th December Scheme Meeting, and expected implementation on the 18th December. The IE (Grant Thornton) concluded “fair and reasonable“.
The Trade:
Trading super wide at a 8.2%/80% gross/annualised spread.
It’s a binary bet on AusSuper backing terms.
Would AusSuper ding an Offer for a plumbing supplier? Maybe.
The market needs some convincing otherwise.