Lark share buyout offer hits a snag

AUSTRALIAN Whisky Holdings, the company hoping to buy a majority shareholding in the Lark Distillery, is yet to receive any acceptances for its latest offer to Lark shareholders.

But the company is hoping Lark shareholders will sell out as a bloc pending negotiations.

AWH made a cash and shares offer in early March for the 51.88 per cent of shares it did not already own in Lark.

The lack of acceptances so far was revealed in a response by the company to an Austra- lian Securities Exchange share price query.

AWH share price has risen from 0.037c a share on March 7 to 0.053c early yesterday.

Company secretary Gary Stewart told the ASX the offer would not have been expected to affect the share price.

“That [any share price change] would depend on the acceptance of the offer by Lark shareholders and more particularly would depend on the extent of acceptances received and whether or not they would have a material impact on the company’s shareholding in Lark,” he said.

“As yet no acceptances have been received in relation to the offer.”

AWH made a cash offer of $400 a share valuing Lark at about $20.6 million.

However, it also made an offer of 12,500 AWH shares for every Lark share which, based on the increased share price, would ostensibly value the company at $35 million.

Lark Distillery Pty Ltd is a private company with 29 shareholders, including former premier Paul Lennon, Hobart businessman Tony Shadforth and tourism entrepreneur Lloyd Clark.

The company comprises a total of 51,601 shares.

The Australian Securities and Investments Commission database shows a number of Lark shareholders have sold shares while others have increased holdings.

Mr Stewart told the ASX that discussions were being held with one Lark shareholder representative who acted as a financial adviser to a significant portion of the (independent) Lark shareholders.

“The company is of the view that a number of Lark shareholders are likely to participate as a bloc,” he said.