Investment firm Washington H. Soul Pattinson has emerged with a 46.3 per cent stake in ethical fund manager Hunter Hall International after a protracted bidding war.
Soul Pattinson announced it had ended its $2.60-a-share offer on March 21, having increased its stake above 46 per cent since first acquiring a 19.9 per cent stake in Hunter Hall from founder Peter Hall.
Mr Hall sold a large part of his holding in Hunter Hall for $1.00 a share at the end of December - well below Hunter Hall's share price of $3.25 at the time - and Soul's flagged its intention to launch a takeover bid for the remaining shares in Hunter Hall for at least $1.00 a share.
Hunter Hall's independent directors recommended shareholders reject the offer, saying it significantly undervalued the group's shares.
Over the following months, investment group Pinnacle Investment Management launched a rival offer for Hunter Hall at $1.50 a share on January 23, prompting Soul Pattinson to increase its offer to $1.60 and Pinnacle to respond with an increase to $2.00.
At the time, Hunter Hall said shareholders should reject both takeover offers because they significantly undervalue the group's shares.
In February, Soul Pattinson increased its offer to $2.20 a share and Pinnacle lifted to $2.40, before in a surprise twist, Hunter Hall announced it had struck an agreement to merge with fund manager Pengana Capital on March 9
At the time Soul Pattinson had taken a 37 per cent stake in Pengana.
On March 14, Mr Hall sold his remaining 24.3 per cent stake in Hunter Hall to Soul Pattinson for $2.60 a share, taking Soul Pattinson's Hunter Hall shareholding to 44.2 per cent.
