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Why is Centre Capital Supporting a Bid in Orchard Process?
We have receieved a few queries from clients and other parties regarding our support for one of the bids lodged in the Orchard process. We have produced this document to paint a clear picture.
Is Centre Capital Bound to the Bid?
While we participated in a bid we are not exclusively tied to it. We expressly reserved the right to support a better option if one emerged.
Why Did Centre Capital Get Involved with the Bid in First Place?
Our process was to support an option we could recommend in the absence of a better option to ensure there was a solution at the table. To have a solution you need a couple of things: the know how and the financial backing. This syndicate had both and we were not willing to see them walk away from the process as this would not have been in the investor's, our client's, interests.
The syndicate behind the bid accepted our support and participation on a non-exclusive basis because they recognised we had this duty to our clients; even though a one way option from their perspective was suboptimal.
Does Centre Capital have an Economic Interest in the Bid?
No.
Where Does it Stand Now?
Now that we have seen board changes at Orchard and hopefully a change in the current KPMG process is not far away we are now looking to see if a better option emerges for our clients.
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