(MENAFN- ProactiveInvestors - Australia) Aviva Corporation (ASX: AVA) as received a share placement and board restructuring proposal from private investment company Arredo.
Under the offer, Aviva will issue 15 million shares priced at A$0.11 each to Arredo to raise A$1.65 million before costs and 10 million options exercisable at $0.175 and expiring four years after the issue date.
Ian Middlemas, who is associated with Arredo, will be appointed as the company's new chairman while Mark Pearce will join as a non-executive director.
While board members Dr Geoffrey Loftus-Hills, Mr Lindsay Reed and Mr Rob Kirtlan have confirmed their support for the proposal, director Pieter Britz has confirmed that he does not support the deal.
Britz was nominated as a director by Sentient Executive GP IV Limited.
Shareholders will now be convened to consider the proposal as well as Sentient's, which holds 14.6% of Aviva, move to remove Loftus-Hills, Reed and Kirtlan as directors and to appoint its nominees as directors of the company.
The board has resolved that Reed continue as the chief executive officer until the Aviva shareholder meeting is held.
Aviva had in February completed the sale of its non core subsidiary Coolimba Power to Westgen for $1 million.
Coolimba Power holds the Coolimba project approvals to develop a 450 megawatt coal-fired and/or a 360 megawatt gas-fired power generation facility.
It has also invested A$125,000 in Papua New Guinea-focused explorer Coppermoly via a convertible note and is still considering other potential projects and investments to add to its current portfolio.
Aviva is trading at close to three quarters cash backing with about $19.6 million in cash, or $0.118 cash per share, as at 31 December 2012. This is close to its current market capitalisation of $26.58 million and share price of $0.16.
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