26 Jan 2010

Cynotech offer by Hawkins in the post next week

12:27 pm on 26 January 2010

A planned takeover offer for Cynotech Holdings by Alan Hawkins will be mailed to investors on 2 February.

Mr Hawkins investment concern, Cynotech Securities Group intends to offer preference shares offering 8% interest to investors holding shares, notes and warrants.

Under the deal, one ordinary and preference share in Cynotech will be converted to one preference share in Cynotech Securities, while each 33.75 warrants in Cynotech will receive a Cynotech Securities preference share.

Mr Hawkins says each Cynotech Securities preference share has an attributed value of 13.5 cents.

The offer had been delayed as Cynotech made changes to comply with the wishes of the Takeovers Panel, which raised some queries about the bid.

Cynotech owns a finance business, and a satellite phone retailing and manufacturing operation.

Mr Hawkins was a high-profile casualty following the 1987 sharemarket crash, which culminated in his jailing for fraud in 1992 following the collapse of Equiticorp.