Shares in traffic camera technology company Redflex Holdings (ASX:RDF) sank on Tuesday after shareholders rejected the takeover offer from Macquarie Capital and Carlyle Group.
RDF shares opened at just $1.660 on Tuesday from the last traded price of $2.610, before recovering somewhat to close nearly 30% lower at $1.835.
The company had the night before disclosed that shareholders had not approved the $2.75 takeover offer from Macquarie Capital and the Carlyle Group, even after the price had been raised to reflect the strong Australian dollar.
Only around 60% of votes were cast in favor of both the resolution to accept the merger scheme and to accept the raised bid, below the percentage that would have been required.
Redflex first announced it had received the offer in February. At the time the offer was a 76% premium on Redflex's closing price prior to the announcement.
But the terms of the initial deal would have seen the price lowered if the Australian dollar was trading significantly higher than the US dollar at the time of transaction, so on the eve of the vote the buyers modified the offer to remove these terms.