Matrix Composites wins FIRB approval for AIH takeover

Matrix Composites & Engineering (ASX:MCE) has taken a step forward in its proposed acquisition by Advanced Innergy Holdings.

The company announced it has received crucial regulatory clearance from the Australian Federal Treasurer under the Foreign Acquisitions and Takeovers Act 1975.

The Commonwealth Government issued a notice of no objection, effectively clearing the foreign investment hurdle for AIH and its wholly-owned subsidiary, Advanced Innergy Solutions Australia, to acquire 100% of Matrix's issued share capital.

The regulatory sign-off satisfies key conditions precedent outlined in clause 3.1(a)(i) of the scheme implementation deed originally entered into on April 20.

Additionally, it satisfies clause 2.1 of separate call option deeds established with specific Matrix shareholders, which collectively represent 19.9% of the company’s shares on issue.

These call options grant AIH Nominee the right to purchase the shares at $0.40 each if a competing proposal emerges, serving as a strategic safeguard without altering the scheme's baseline $0.40 cash-per-share consideration.

The transaction is structured as a members’ scheme of arrangement under Part 5.1 of the Corporations Act 2001.

Following the regulatory milestone, the Matrix board maintained its unanimous recommendation that shareholders vote in favour of the scheme.

At the time of reporting, Matrix Composites & Engineering’s share price was $0.39.