Waterfall secures extension to consider PSSL takeover bid
Waterfall Asset Management has secured an extension to consider its proposed takeover of Pollen Street Secured Lending (PSSL).
PSSL’s board sought approval for an extension from the Panel on Takeovers and Mergers after Waterfall was supposed to have made a decision on whether to make an offer by today. The asset manager will now have to make a decision by 21 April 2020.
Shares in PSSL were up 8.32 per cent at 495p but it falls short of the 900p a share bid Waterfall had initially offered. It is unclear whether Waterfall will revise its offer given the market volatility amid the coronavirus outbreak.
PSSL said: “Waterfall has indicated that it remains committed to pursuing the possible offer and the board is continuing to make every effort to progress the possible offer in the interests of shareholders.”
“There can be no certainty that a firm offer will be made, nor as to the price or the terms on which any offer might be made.”
The bid has caused tension between the PSSL board and its investment manager Pollen Street Capital.
In January, Waterfall made a possible cash offer of 900p per PSSL share, backed by PSSL’s largest shareholder Invesco. As part of the due diligence process, PSSL asked PSC to populate the so-called data room with documents.
Earlier this month, the investment trust claimed the documents had been “heavily redacted” and are “historic and/or irrelevant”, threatening PSC with legal action to obtain the materials.
In a statement today, PSSL said: “The terms of any offer remain subject to discussion and to the completion of due diligence by Waterfall.”
“The board has not yet been able to provide due diligence information requested by Waterfall although some progress has been made in this regard and this continues to be a key focus for the board.”
Waterfall said that despite the ongoing market uncertainty due to Covid-19 it “remains committed to pursuing a possible cash offer and looks forward to receiving from PSSL the necessary information required to undertake due diligence.”
Get the news as it happens by following City A.M. on Twitter.