Faster Payments and Higher Price: What Risks Lurk in STAM’s Eildon Takeover?
Samuel Terry Asset Management has raised its takeover offer for Eildon Capital Group securities to A$0.875 per stapled security, sweetening the deal with faster payment terms for electronic transfers.
- Offer price increased by 9.4% from A$0.80 to A$0.875 per stapled security
- New offer price represents a 24.1% premium to last closing price before announcement
- Total cash consideration estimated at A$14.35 million plus transaction costs
- Payment terms shortened to 5 business days for electronic funds transfer recipients
- STAM confirms sufficient cash reserves (~A$125 million) to meet obligations
Offer Price Uplift Signals Renewed Confidence
Samuel Terry Asset Management Pty Ltd (STAM), acting as trustee for the Samuel Terry Absolute Return Active Fund, has officially increased its takeover offer for all remaining stapled securities in Eildon Capital Group (ASX, EDC) from A$0.80 to A$0.875 per security. This adjustment, disclosed in a supplementary bidder's statement lodged with ASIC on 3 October 2025, represents a significant premium of 24.1% over Eildon's last closing price prior to the offer announcement and a 15.3% premium to the one-month volume weighted average price.
The move to raise the offer price suggests STAM's determination to secure full ownership of Eildon Capital Group, a player in the Australian asset management sector. By sweetening the deal, STAM aims to incentivize remaining securityholders to accept the offer, potentially accelerating the takeover process.
Financial Capacity and Payment Terms
STAM has confirmed it holds approximately A$125 million in cash deposits, comfortably covering the total cash consideration of around A$14.35 million required to acquire all outstanding stapled securities, plus associated transaction costs. This financial readiness underscores STAM's commitment and ability to complete the acquisition without funding concerns.
In addition to the price increase, STAM has improved the offer's attractiveness by reducing payment terms for securityholders who opt for electronic funds transfer. Payments will now be made within five business days after the offer becomes unconditional or after acceptance, whichever is earlier. This expedited timeline enhances liquidity for accepting investors and may further encourage prompt acceptance.
Regulatory Compliance and Next Steps
The supplementary bidder's statement supersedes prior offer terms where inconsistencies exist and complies with relevant sections of the Corporations Act 2001 (Cth). ASIC has been notified but does not endorse the contents. The offer remains subject to conditions outlined in the original bidder's statement dated 8 September 2025.
Market participants will be watching closely to see how Eildon Capital securityholders respond to the improved offer and whether STAM can achieve the necessary acceptance levels to finalize the takeover. The increased offer price and faster payment terms may well tip the scales in STAM's favor.
Bottom Line?
With a higher offer and quicker payouts, STAM is positioning itself to close the Eildon Capital takeover swiftly, investors will be watching acceptance rates closely.
Questions in the middle?
- Will the increased offer price prompt a surge in acceptances from Eildon Capital securityholders?
- Are there any competing bids or regulatory hurdles that could affect the takeover outcome?
- How will the market value Eildon Capital securities in light of the revised offer terms?
