AMA Group Limited advised that it has received a formal response from the Deputy Commissioner of Taxation refusing AMA’s request for a Ruling for Demerger Relief. This ruling was required to undertake the Demerger Scheme of Arrangement and Acquisition Scheme of Arrangement as announced to the market on 13 April 2018.
Blackstone has been informed that the demerger will therefore not proceed and the proposed transaction with Blackstone will proceed no further. Given this has occurred due to the decision of the Deputy Commissioner of Taxation there are no break fees payable in relation to the transaction terminating.
The AMA Board is disappointed that the Deputy Commissioner of Taxation has taken a different view as to the requirements for demerger relief as compared with previous transactions, particularly given the advice the Board received from its advisors that demerger relief would be granted.
The AMA Board is pleased to advise, however, that despite the distractions of this transaction, the business has continued to perform strongly and is still on target with the market guidance released earlier in the year.