Charges dropped against Jenny Hutson, David Burke over G8 Education’s Affinity takeover bid

There’s been a sudden development in long-running cases against two former executives over a failed takeover of a rival childcare company.️ READ WHAT HAPPENED

Charges have been suddenly dropped against two former executives accused of breaking two sets of laws during an ASX-listed company’s failed takeover of a rival childcare company.

Jennifer Joan Hutson, 57, was chair of Gold Coast-based G8 Education during its attempted hostile takeover of Affinity Education in 2015.

Ms Hutson was charged in 2018 with 30 offences, related to the unsuccessful deal, following a declaration by the Takeovers Panel that there had been “unacceptable circumstances” in relation to the takeover bids.

As part of that declaration, the Panel found that there was an undisclosed association between G8 Education and West Bridge in the acquisition of Affinity shares.

The Commonwealth Director of Public Prosecutions on Thursday dropped all the charges brought by ASIC, which included 10 counts of authorising the giving of false or misleading information to an operator of a financial market and 15 counts of giving false or misleading information under section 64 of the ASIC Act.

The Gold Coast Bulletin has contacted Ms Hutson for comment.

Jenny Hutson outside court in 2018. Pic Annette Dew

Two counts of attempting to pervert the course of justice under section 43 of the Crimes Act, which carries a maximum sentence of 10 years’ imprisonment, were also discontinued.

Five charges against Ms Hutson’s former colleague David Justin Burke, 65, of Natural Bridge, were also discontinued.

Mr Burke had been charged with giving false or misleading information to ASIC during examinations under oath in March and June 2016.

In a statement, ASIC said Ms Hutson’s trial had been scheduled to proceed in the District Court but had been cancelled after the CDPP “conducted a further review of the matter”.

G8 attempted a $185m takeover of Affinity and its 160 centres in 2015, but fell short after Affinity stitched up a superior $213 million cash deal with private equity firm Anchorage Capital Partners.

G8 began buying shares in Affinity early in 2015 and by July lobbed a hostile takeover tilt, with a 70c-a-share bid.

It later increased to 80c-a-share, valuing Affinity at $185 million.

A messy battle ensued after G8 argued Affinity shareholders would not get a better deal.

But Anchorage countered with a 90c-a-share offer and then in September sweetened it with a 92c-a-share offer, trumping the bid from G8.

Ms Hutson resigned as chair of G8 in October 2015.