Australian real estate platform Onthehouse Holdings has advised its shareholders that a revised, non-binding, 100 per cent takeover offer from a consortium of investors has entered the due diligence phase.
77 Victoria Street Trust, an entity affiliated with Onthehouse directors Michael Dempsey and Daniel Dempsey and Macquarie Group subsidiary PIQ1 Pty Limited last December presented OntheHouse with a proposal of $0.755 per share which was rejected by the company's Board on the grounds that they believed it it undervalued Onthehouse.
The Revised Proposal contemplates an all cash consideration of $0.85 per Onthehouse share and options over unissued Onthehouse shares. It represents a 13 per cent increase on the Consortium’s original proposal on 22 December 2016
The OntheHouse Board told shareholders there is no certainty that the revised proposal will result in a binding offer or scheme, or that it will recommend accepting the offer.
"Onthehouse cautions its shareholders not to make any decisions about Onthehouse shares on the assumption a transaction will proceed," the company warned in its statement.
However the company has since advised the Consortium has initiated the first stage of the process by undertaking confirmatory due diligence for a period of approximately four weeks in order to present a binding proposal.
The revised proposal is subject to a number of conditions including: due diligence, finalisation of
scheme of arrangement documentation, the unanimous recommendation of the independent
directors and internal, external and regulatory approvals.
The Board adds it has not granted exclusivity to the Consortium, reiterating there is no certainty at this stage the revised offer will result in a binding offer or scheme.
Onthehouse says it will continue to keep the market informed about the developments of the proposal.