Aurora resists ruling on Keybridge shares

Aurora Funds Management is yet to release 31.7 million Keybridge shares belonging to Farooq Khan’s Bentley Capital despite orders from the Takeovers Panel.

Nick Bolton in his Melbourne office.

Aurora Funds Management is yet to release 31.7 million Keybridge shares belonging to Farooq Khan’s Bentley Capital despite orders from the Takeovers Panel.

Mr Khan said Aurora — which counts Keybridge managing director Nick Bolton as one of its biggest shareholders — was yet to update the market on its true holding on Keybridge and had no claim to Bentley’s shares in the company.

The battle for Keybridge, which has a market capitalisation of $12.7m, is becoming one of Australia’s most drawn out and intriguing takeovers as Aurora and Sydney fund manager Geoff Wilson battle to control the cashbox minnow.

Mr Khan cited the Takeovers Panel declaring that any person who accepted into Aurora’s offer had the right to withdraw that acceptance, and Mr Khan exercised that right on May 21.

“Bentley believes it is important to provide clarity to the market regarding the status of its current shareholding in Keybridge, particularly given that Aurora has not yet filed a change notice,” Mr Khan said.

“Aurora has no claim to Bentley and Scarborough Equities’ aggregate 31.7 million shares in Keybridge.

“Bentley/Scarborough have successfully withdrawn their acceptances from the (Aurora) bid and any ‘contract’ arising on Bentley/Scarborough’s inadvertent acceptance into the (Aurora) bid, which is denied, has now ceased to exist.”

Mr Khan has initially accepted a takeover from Mr Wilson’s eponymous listed fund, Wilson Asset Management (WAM), which was offering 6.9c apiece. But a broker error transferred Mr Khan’s shares into the rival takeover offer from Aurora, which was offering Keybridge shareholders 7c a share.

Mr Khan said Bentley was awaiting receipt of WAM’s latest bidder’s statement so that it could “determine its position in relation to such offer”.

The ASX has suspended Keybridge from trading since last July after the company spent $5m in an “incomplete deal” involving Antony Catalano’s Australian Community Media, which owns The Canberra Times and a suite of ­regional newspapers. Mr Catalano — a Keybridge director — also guaranteed the transaction if it could not be completed.

Meanwhile, Mr Bolton has launched legal action against WAM.