MHM Automation Limited
Transaction Type: Company meeting (Allotment)
Allottee: Jajar Investments Limited and Jason Gerrie
Independent Adviser(s): Simmons Corporate Finance Limited (Rule 18)
Date of meeting: 21/04/2023
MHM Automation Limited (MHM) proposed to acquire Wyma Engineering Limited (Wyma) for up to $60,000,000 (the Proposed Transaction). Prior to the Proposed Transaction, Wyma was owned by Jajar Investments Limited (Jajar) (90%) and Jason Gerrie (10%). The consideration for the Proposed Transaction was comprised of:
- $28,000,000 in cash;
- $17,000,000 by way of an allotment of 22,666,667 new ordinary MHM shares, at $0.75 per share, to be allotted to Jajar and Jason Gerrie (the Proposed Allotment); and
- up to $15,000,000 cash by way of a vendor earnout (contingent on the future earnings of Wyma).
The Proposed Allotment required shareholder approval under rule 7(d) of the Code.
On 21 April 2023, MHM shareholders voted in favour of the Proposed Allotment and the Proposed Transaction.
Simmons Corporate Finance Limited prepared the independent adviser’s report under rule 18 of the Code on the merits of the transaction.