Takeover of The Van Diemen’s Land Company
The Van Diemen’s Land Company (VDL), a Royal Charter Company, established in
Tasmania in 1825, has received a takeover proposal from the Tasmanian Land
Company (TLC), a newly incorporated Australian company.
Under the proposal VDL shareholders will be able to accept either cash or scrip in
TLC for their shareholding in VDL.
If key VDL shareholders accept scrip, it is anticipated TLC will undertake a restructure
of VDL to facilitate future capital raising, and enable the company to substantially
expand its dairying operations in Tasmania.
New Plymouth District Council (NPDC), the 98.4% indirect majority shareholders of
VDL, have advised they will be accepting the offer and will take scrip in TLC.
If VDL minority shareholders elect to take scrip, they may in future be subject to
standard Australian compulsory acquisition under Australian corporate law.
TLC has offered Au$2 per share, this is a 45% premium to the VDL Net Tangible
Assets as at 31 May 2014 of $1.375 per share.
In the absence of a higher offer the Independent Directors of VDL have
recommended shareholders accept the offer.
Details of the takeover offer have been distributed to shareholders on 18 th
December 2014, and a copy will be available on the company’s website.
Shareholders will have until 5:00pm on 5th February 2015 to accept the offer, which
is conditional on receiving acceptance from over 90% of VDL shareholders.
Keith Sutton
Governor
The Van Diemen’s Land Company