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ARTICLE · 30 MARCH 2014

Lantern Hotel Group - flexibility required on s609(7) Corporations Act

Kemp Strang Lawyers
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The Lantern case demonstrated the need for more flexibility by ASIC in its approach to s609(7) of the Corporations Act.

AustraliaCorporate/Commercial Law
Jason Lambeth
Jason Lambeth
Andrew Mock
Andrew Mock
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Key points

  • Demonstrates the need for more flexibility by ASIC in its approach to s609(7) of the Corporations Act.
  • Takeovers Panel highlighted the 'potential issue' with a major shareholder being permitted to vote in favour of a buy-back which may result in a significant increase in its interest in the company.

Background

Lantern Hotel Group (Lantern) is an ASX listed stapled entity. Lantern stapled securities comprise one ordinary share in Lantern Hotel Group Limited and one unit in the Lantern Real Estate Trust.

Millinium Asset Services Pty Limited (as trustee for the Borg Fund) holds approximately 24.3% of Lantern's securities. Three Pillars Portfolio Managers Pty Limited (Three Pillars) is the investment manager of the Borg Fund. Torchlight GP Limited (Torchlight) holds approximately 30.2% of the Lantern securities.

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