Overview of East 33 Limited's takeover offer by Yumbah Aquaculture Limited

East 33 Limited (ASX: $E33) has entered into a Bid Implementation Deed with Yumbah Aquaculture Limited for an off-market takeover offer. The offer is for the acquisition of 100% of East 33's shares at a cash price of $0.022 per share. The independent board committee of East 33 unanimously recommends that shareholders accept the takeover bid, provided there is no superior proposal or an independent expert concludes that the offer is not fair and reasonable. Yumbah intends to delist East 33 subsequent to the takeover bid and obtain all necessary approvals.

Executive Commentary on the Takeover Offer

The takeover bid provides an opportunity for East 33 shareholders to exit their shareholdings with certainty and provides liquidity for shareholders in a stock with historically low trading volumes. The offer price of $0.022 per share represents an attractive premium and is higher than various VWAPs and the last trading price on 2 August 2024. Without additional capital, East 33 may not have access to sufficient funding for its future requirements. Yumbah has engaged legal and financial advisers for the transaction, while East 33 has engaged legal advisers.

Summary of the Takeover Offer and Outlook

Yumbah Aquaculture Limited has entered into a Bid Implementation Deed with East 33 Limited for an off-market takeover offer at a cash price of $0.022 per share. The independent board committee of East 33 unanimously recommends that shareholders accept the takeover bid, provided there is no superior proposal or an independent expert concludes that the offer is not fair and reasonable. The takeover bid provides an opportunity for East 33 shareholders to exit their shareholdings with certainty and provides liquidity for shareholders in a stock with historically low trading volumes. Yumbah intends to delist East 33 subsequent to the takeover bid and obtain all necessary approvals. The announcement outlines the conduct of E33 during the Offer Period, including the conduct of business, appointment of directors, change of control provisions, representations and warranties, releases, takeover bid variation and waiver, public announcement, exclusivity, matching right, and reimbursement fees. It also provides a comprehensive overview of the obligations and responsibilities of E33 during the Offer Period, as well as the rights and entitlements of both E33 and Yumbah in the context of the takeover bid.