Locality Planning Energy labels takeover bid as opportunistic after CEO turmoil
Queensland-based specialist electricity provider Locality Planning Energy (ASX: LPE) has labelled an off-market takeover offer from River Capital as “opportunistic”.
The unsolicited bid for Locality comes just one day after the company announced it had resolved to terminate the employment of chief executive officer Damien Glanville with immediate effect due to his failure to comply with the company’s securities trading policy.
The Locality board is now being led by executive chair David Jarjoura, who has told shareholders to take no action on the River Capital proposal.
Terms of the offer
The off-market takeover from Melbourne-based investment firm River Capital on behalf of the River Capital Embedded Network Trust is offering $0.08 per share for the Locality shares it does not already own.
The bid is subject to a 90% minimum acceptance condition.
The Locality board noted that the offer is not open for at least 14 days and shareholders should take no action until the directors have examined it more closely and made a recommendation.
In its bid announcement, River Capital said the offer price represented a 135% improvement on the $0.034 closing price of Locality’s shares as at 27 March 2024, the last trading day before it first acquired shares in the company.
It is also approximately 48% more than the $0.054 closing price of Locality shares on 15 April 2024.
Board upheaval
Earlier this month, it was revealed that the Locality board had been reduced from seven to three members.
Mr Jarjoura’s salary had been reduced from $220,000 to $125,000, while non-executive directors Simon Tilley and Stan Kolenc had proposed to take newly-issued options in lieu of their fees to “preserve the company’s capital”.
At the time, the company also noted that Mr Glanville was on extended personal leave and that Mr Jarjoura – interim chair at the time – would act as executive chair in his absence.
He is receiving a stipend of $10,500 per month over and above his previous salary while in this role.