Rakon, a long-standing New Zealand technology business listed on the NZX, attracted acquisition interest from US-based electronics company Bourns. The proposed take-private required not just a compelling offer, but the ability to bring a diverse and at times disengaged shareholder base along to a clear and confident conclusion.
Working alongside Bourns, Simpson Grierson and Cameron Partners, Shanahan supported the positioning of the transaction with a wide range of stakeholders including institutional investors, retail shareholders and market commentators. The challenge was as much about overcoming inertia as it was about addressing active opposition, with a significant proportion of the register historically passive and difficult to mobilise.
The approach
A clear, consistent narrative was developed to explain the strategic rationale for the transaction, the certainty of value on offer, and the risks of remaining listed in a challenging market environment for small-cap technology companies. This narrative was reinforced through a sustained shareholder engagement programme designed to increase understanding and participation.
The outcome
The result was a successful campaign that secured the required 90% acceptance threshold, enabling the compulsory acquisition of remaining shares and the delisting of Rakon, and a good financial outcome for most shareholders. The outcome reflected a disciplined, well-orchestrated approach that combined strong financial advice with targeted communications and stakeholder engagement.