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Origo Partners : OPP – convertible ZDPs

Origo issued 60m convertible ZDPs in March 2011. These mature in September 2017 and, according to the articles says Origo, on a change of control of Origo these are automatically convertible into ordinary shares. Following an acquisition, Brooks Macdonald Group controls 85.7% of the convertible ZDPs. Brooks Macdonald say they should have an option to redeem the convertible ZDPs on a change of control instead of converting them. Origo say Brooks Macdonald are basing this on a short-form term sheet that Liberum supplied to the firm Brooks acquired that held the convertible ZDPs but Origo say such a clause never made it into the final documentation. Brooks Macdonald are apparently considering legal action. Origo say the ordinary shareholders they have consulted so far would be unhappy about giving Brooks Macdonald this option. Origo say they will make another announcement on this issue in due course.

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