Bravura Solutions (Bravura) share price fell to a record low yesterday amid uncertainty over its directors’ shareholdings and speculation that Ironbridge Capital’s takeover offer may be dropped.
The wealth manager’s stock tumbled 15 cents or 12.5 per cent to $1.05 in trading yesterday after touching a record low of 95 cents.
Bravura confirmed that it would pursue investment bank Merrill Lynch in court to retrieve shares of its directors Iain Dunstan and Simon Woodfull.
The directors would make declarations against Merrill Lynch in court which would “confirm their beneficial interest in the Bravura parcel”, a Bravura statement to the Australian Securities Exchange (ASX) said.
The directors’ have a combined 43.5 million of Bravura shares rendered inaccessible because they bought it using margin loans provided by the collapsed Lift Capital.
Lift went into voluntary administration on April 10 after its margin lending business model failed.
Woodfull and Dunstan’s shares have since been in the custody of investment bank Merrill Lynch, Lift’s secured creditor.
The directors will front Merrill Lynch in the New South Wales Supreme Court and the outcome of the proceedings may be determined within a month, Bravura’s statement said.
Private equity firm Ironbridge Capital may also drop its bid for Bravura following Bravura’s profit downgrade on June 16, media reports have speculated.
Bravura downgraded its earnings estimate for the half-year to a minimum of $22.5 million, from a minimum of $26 million.
One of Ironbridge’s conditions in its $272 million all-cash offer for Bravura was that Bravura’s earnings must not fall below $23.5 million.
Ironbridge’s offer valued Bravura at $1.73 a share.
Bravura administers over 18 million pension, life insurance and investment accounts across Australia, New Zealand, Europe, Asia, South Africa and India.
