Redflex shareholders reject Macquarie bid
Shareholders of red light and speed camera maker Redflex Holdings have voted against a $303.5 million takeover offer by Macquarie Group Ltd and The Carlyle Group.
The shareholders voted against the scheme of arrangement announced to the Australian Securities Exchange on 21 February under which Carlyle and Macquarie proposed to acquire all of the issued ordinary shares in Redflex.
Shareholders also voted against a preliminary resolution to amend the scheme to provide shareholders with a minimum scheme consideration of $2.75 cash per share.
Redflex shares went into a trading halt early yesterday ahead of the shareholders' meeting and last traded at $2.61.
Macquarie and Carlyle increased their offer to $2.75 per Redflex share last week and eliminated the variation in the offer based on changes in the exchange rate.
Carlyle said when it made the original offer on 21 February Redflex offered significant global growth opportunities because of the growing appreciation of the safety benefits of red light cameras.
Redflex chairman Max Findlay said in an address to shareholders on Monday that the board unanimously recommended the takeover offer.
Redflex last made headlines when Victoria Police shut off the point-to-point speed camera system along the Hume Highway after it was discovered that cameras had been issuing incorrect infringement notices due to a clock fault last October.
The highly publicised fault contributed to negative public sentiment towards the Victorian speed camera system, triggering a review by the state's auditor-general.