BREAKING NEWS: Takeover given the go ahead

BREAKING NEWS: Takeover given the go ahead | Insurance Business

BREAKING NEWS: Takeover given the go ahead
The takeover of Calliden by Steadfast took another step closer to completion today as the Federal Court of Australia granted approval to the scheme of arrangement that was agreed upon by shareholders earlier this week.

It is expected that a copy of the court order will be lodged with ASIC tomorrow, at which time the scheme will become legally effective.

Calliden will apply for its shares to be suspended from trading at the close of trading on the ASX after this submission has been made tomorrow.

Speaking of the takeover earlier this week, CEO and managing director of Steadfast, Robert Kelly, said: “We are thrilled to reach this significant milestone in acquiring most of Calliden's underwriting agencies. These agencies will complement our existing mix of specialised agencies and make Steadfast one of the largest agency groups in Australia with annual gross written premium of over $335 million.”

The takeover will pay a scheme consideration of $0.415 for each Calliden share held and shareholders will receive a $0.05 special dividend for every share held on 17 December 2014.

It is expected that special dividend will be paid on 19 December while the scheme consideration will be elligble on the implementation date, currently set at 23 December.