Montana Group (N.Z.) Limited


Transaction Type: Takeover (Partial)

Offeror: Lion Nathan Enterprises Limited

Independent Adviser(s): PricewaterhouseCoopers (Rule 21)

Offer commencement date: 1/07/2001

Offer closing date: 17/08/2001


On 1 July 2001, Lion Nathan Enterprises Limited (Lion) gave notice that it intended to make a takeover offer to acquire shares in Montana Group (NZ) Limited (Montana). Lion announced it would make an initial partial offer for 11% of Montana at $5.50 per share. A successful offer would result in Lion holding more than 50% of Montana at which point Lion would offer $3.70 for all remaining shares. 

On 11 July 2001, the Panel issued an order to restrain Lion from acquiring securities in Montana. The Panel concluded that although Lion announced it would make two offers (one at $5.50 per share and the subsequent offer at $3.70 per share for all remaining shares) the combined nature of the takeover notice with the public statements made by Lion: “Shareholders will have the opportunity to divest any remaining shares in the subsequent offer”, may in fact amount to a full offer and may, because of the different considerations offered, be in conflict with the Code. 

On 16 July 2001, the Panel determined that Lion may not have acted in compliance with the Code in relation to its offer. On 25 July 2001, Lion advised Montana and the Panel that it would not proceed with the notified partial offer. 

On 24 August 2001, Lion decided to sell its stake of 43% in Montana to Millstream Equities at $4.80 per share.