- Silver Chef has pulled out of the Scheme Implementation Arrangement (SIA) with Next Capital
- In July, Next Capital offered Silver Chef shareholders $0.70 cash and one note for each Silver Chef share held
- Silver Chef intends to work with Blue Stamp on a recapitalisation program
Silver Chef shares dropped as much as 25 per cent today after it pulled out of the Scheme Implementation Arrangement with Next Capital.
In July, Next Capital offered Silver Chef shareholders $0.70 cash and one note for each Silver Chef share held.
Silver Chef now intends to work with Blue Stamp on a recapitalisation program.
Blue Stamp is an Australian investor that holds 19.99 per cent share in Silver Chef and has been increasing its stake in the company over the last few months, to show it is keen to take further control of the business.
Last week, Blue Stamp put forward a recapitalisation proposal, whereby Silver Chef would undertake an entitlement offer to raise approximately $50 million at $0.30 per share.
Due to the SIA being terminated, the General Meeting and Scheme Meetings on September 6th, 2019 has been cancelled.
There is no cancellation fee from the SIA, unless a third party announces a completing transaction before November 15 or acquires 50 per cent of Silver Chef shares.
Silver Chef will trigger a waiver review event.
“Accordingly, Silver Chef must negotiate with its financiers for 30 days to determine the effect that termination of the SIA will have on Silver Chef and its ability to comply with its obligations under the finance facilities,” the company said.
Silver Chef is a hospitality equipment funding company. It provides a flexible equipment funding solution to customers through its Rent-Try-Buy® solution in the hospitality industry.
Blue Stamp made the offer as it was strongly opposed to the Next Capital Scheme and misaligned interests of the Chairman who has overseen over $250m of wealth destruction in recent years.
“We strongly believe the Next Capital Scheme would unfairly deprive shareholders of the significant upside value inherent in the turnaround of Silver Chef’s performance,” Blue Stamp CEO Luke Trickett stated.