Compulsory acquisition for reluctant shareholders in Tatil-Colfire takeover

Tatil intends to acquire shares from shareholders in Colfire, who did not accept an offer to buy out the ordinary shares of the insurance company, through a compulsory acquisition process after announcing that it is buying all shares in a takeover.

In communication issued through the TT Stock Exchange, Tatil said it will be conducting the exercise pursuant to the provisions of section 202 of the Companies Act, Ch 81:01.

On Tuesday, in an advertisement, Tatil announced that its offer to buy all of Colfire’s shares at a cash price of $20.32 closed on February 2. The terms and conditions of the offer were complied with and all 15,357,405 shares were deposited pursuant to the offer under paragraph 11(o) of the securities industry (take over) by laws.

The stock exchange release said the offer was accepted by shareholders holding at least 90 per cent of the total shareholding in Colfire, but there was a small percentage of shareholders who did not accept it.

“Tatil shall acquire from each shareholder in Colfire who did not accept the offer, the shareholding in Colfire not deposited, which represents 2.5 per cent of the total shareholding on the same terms of the offer, by compulsory acquisition pursuant to the provisions of section 202 of the Companies Act,” Tatil said.

On December 29, Tatil, a wholly-owned subsidiary of Ansa Merchant Bank Ltd (AMBL), launched an offer and takeover bid to the shareholders of Colfire. Tatil initiated the takeover process on February 6 to take up and pay for the shares, representing 97.5 per cent of the total issued shareholding in Colfire. Colfire was previously owned by the CL Financial group.