Geo Limited has announced that it has appointed North Ridge Partners as its financial advisor to pursue strategic options.
This includes exploring value accretive transactions such as a sale or restructure.
North Ridge Partners, an investment bank, will be responsible for assessing these options.
The appointment of North Ridge Partners is subject to fees, including a fixed monthly retainer fee and a success fee based on the form and value of the transaction.
It is important to note that North Ridge Partners is considered a related party of Geo due to a director of Geo, Roger Sharp, also being a director and beneficial owner of North Ridge Partners.
However, Sharp was not involved in the decision to engage North Ridge Partners or the negotiations of the mandate.
Depending on the form of the transaction, the payment of fees to North Ridge Partners may constitute a material transaction, which would require shareholder approval.
However, Geo has applied for and been granted waivers from the NZ RegCo, subject to certain conditions being met.
The company believes that obtaining shareholder approval would be costly and excessive, and therefore, the waivers are in the best interests of Geo and its non-interested shareholders.
Geo's board also considers the entry into the mandate with North Ridge Partners to be in the best interests of the company and its non-interested shareholders, citing the lower fees proposed by North Ridge Partners and their understanding of Geo's business and relevant markets.
If a transaction is pursued, Geo will comply with any shareholder approval requirements.See more