Vonex Limited (ASX:VN8) Cancels Scheme, Focuses on MaxoTel Offer
Cessation of Scheme Implementation Deed
Vonex Limited (ASX: VN8) has decided to cancel its Scheme Implementation Deed (SID) with Maxo Telecommunications, discontinuing the proposed scheme. This decision follows Swoop Telecommunications’ indication to vote against the scheme, which led the parties to mutually agree to terminate the SID with no break fees payable.
MaxoTel Offer Details
MaxoTel will not extend its current on-market unconditional cash offer of 4.4c per share past 28 January 2025, following cease of the SID. The Vonex Board recommends all shareholders accept the MaxoTel offer before it expires. Following the offer’s conclusion, the future trading price of Vonex shares remains uncertain without the MaxoTel offer.
Shareholder Recommendations
The Board continues to advise shareholders to reject the conditional scrip offer from Swoop Telecommunications, which requires over 50.1% of shares. MaxoTel has already secured a relevant interest in 52.92% of Vonex shares. The Board’s recommendations are aimed at protecting shareholder interests during this transition.
Debt Repayment and Future Plans
In light of these developments, Vonex will expedite its evaluation of options for repaying a $23 million debt facility that arose from a change of control. The Board is reviewing potential capital raises and engaging other debt providers to address this obligation. Further announcements will clarify Vonex’s course of action going forward.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.