James Hay is set to acquire Nucleus by way of a recommended takeover offer, as opposed to its original plan of using a scheme of arrangement, in order to increase its chance of snapping up the rival platform.
A takeover offer is a proposal made by the bidding company to target all of the shareholders of the company, while a scheme of arrangement, James Hay's original method of approach, has the target company propose the deal to its shareholders. In this instance, Nucleus directors have consented to the switch to a takeover offer. A scheme of arrangement deal needs approval of at least 75% of votes cast and is then binding on all shareholders, while a takeover offer must be formally accepted by 50%. A scheme must also be sanctioned by the courts. The Nucleus board and Sanlam, which were both...
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