The terms of settlement where outlined in a Deed of Settlement, to which MEC's 48.2% owned subsidiary
Advent made a request to MEC on
The Company has made a number of ASX announcements concerning the proposed in specie distribution and the steps it has undertaken to comply with the requirements of the in-specie distribution process.
On the
- Advent has informed MEC of its intension to withdraw its prior request for an in-specie distribution subject to settlement of its claim total of
- The in-specie distribution, if completed in full, will result in the Company disposing of its major investment and as a result there will most likely be a directive from the ASX to require MEC to re-comply with the requirements of Chapters 1 and 2 of the ASX Listing Rules for the securities of the Company to be re-instated to official quotation. Furthermore, the Company is a registered PDF and, in this regard, the proposed in-specie distribution adds an element of complexity and risk in the management of the PDF requirements. The MEC Board considers this risk to be greater than the benefits.
- There will be a substantial reduction in the Company's assets which will decrease the value of the Company.
In view of this development regarding the withdrawal of the proposed in-specie distribution MEC is currently in discussions with the ASX and continues to work on a notice of meeting which is intended to be combined with the Company's AGM. The Company will release the notice of meeting once its approved by the ASX.
MEC will continue to manage its investment interest in Advent and also give consideration to additional investments in the future.
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