Acquila, a prominent player in the investment landscape, has opted to scrap its merger aspirations after facing a resounding rejection from its shareholders.
The company, which initially unveiled its contemplation of broader strategic avenues in December 2023, including a potential merger with another listed investment firm under a Section 110 scheme of reconstruction, has now reversed course.
In a statement issued today, Acquila highlighted the culmination of its deliberations, stating, “The board has decided to terminate the Section 110 Review.”
This decision follows a meticulous process of evaluation, spurred by a flurry of interest from various quarters. Offers, including those from Octopus Renewables Infrastructure Trust plc and two other investment entities, were meticulously examined. Each offer proposed the issuance of newly minted shares of the acquirer, with one even earmarking a cash exit facility of up to 10% of the total consideration.
However, despite the thorough examination and indicative offers, Acquila faced a substantial hurdle. Shareholders wielding over 25% of the total voting rights of the company voiced their dissent, effectively quashing any potential vote on a Section 110 combination.
In light of this shareholder feedback and an astute assessment of prevailing market dynamics, Acquila deemed the merger unviable. “The board is also mindful of the additional financial costs that it would incur in running the Section 110 Review to its conclusion,” the company stated.
As Acquila bids adieu to its merger ambitions, it now turns its gaze towards a spectrum of alternatives. Wind-down, partial or complete asset sales, or the continuation of its current trajectory are all under consideration.
