Aurora Funds Management has lost patience with 8IP Emerging Companies (ASX:8EC), launching a takeover bid this morning after spending the past year trying to roll its board of directors.

Aurora said this morning its subsidiary Aurora Dividend Income Trust would make an all-scrip takeover bid for 100 per cent of 8IP, at 75c per share, a 12 per cent premium on 8IP’s closing price on Thursday of 67c.

  • Scroll down for more ASX corporate news >>>

The bid, which values 8IP at $30.8 million, follows months of frustration from Aurora, which is a significant shareholder in 8IP.

Back in March last year Aurora called for a general meeting of 8IP shareholders, seeking to remove its three directors and replace them with Aurora directors.

It expressed concerns about a lack of share price traction and the riskiness and lack of returns of some of 8IP’s companies.

8IP shot back, recommending shareholders vote against all six resolutions, which led to Aurora agreeing to drop the resolutions to remove the 8IP directors.

When the meeting was held in April for the appointment of the three Aurora directors, two-thirds of 8IP shareholders voted against the motion, with 81 per cent of proxy votes received in advance against it.

Some five months later, Aurora decided to challenge the results of the meeting, but by March had dropped its case, with the Supreme Court of NSW ordering Aurora to pay 8IP costs of the proceedings.

Aurora currently has a 16.01 per cent shareholding in 8IP.

Aurora is yet to release its bidders statement and 8IP is yet to release its target statement. Stockhead has reached out to 8IP for comment.

8IP Emerging Companies (ASX:8EC) shares over the past year.


In other ASX corporate news today…

BPH Energy (ASX:BPH) takes action against MEC Resources (ASX:MMR). BPH have commenced an oppression of minority shareholders action against MEC Resources. The application is to “regulate the conduct of the company’s affairs by reason of it being either contrary to the interests of the members as a whole or oppressive to against a member or members”.
Sinetech (ASX:STC) seeking readmission to the ASX. Sinetech, which has been suspended since February this year, is seeking readmission the official quotation if it is able to make an acquisition of IncentiaPay (ASX:INP). The ASX has advised, however, that there is a “significant likelihood” that it would decline Sinetech’s request.
Celamin (ASX:CNL) gets a project back. The Tunisian Court of Appeal has ruled to return from Tunisian Mining Services Celamin’s interest in its Chaketma project and payment of over US$4m in damages and costs plus interest. Celamin now plans to introduce an international partner to facilitate funding discussions as well as commence a feasibility study to determine the viability of producing either rock phosphate or chemical fertiliser.