A coalition of Bremworth shareholders holding 19.4 percent of the carpet manufacturer's voting rights has announced it will vote against the proposed takeover by Floorscape.
The declaration introduces substantial uncertainty into the deal, which has already encountered resistance from various quarters.
The investors stated that the acquisition is not in the best interests of the industry, signaling a coordinated effort to block the transaction.
The opposition from this significant shareholder bloc complicates Floorscape's path to securing the necessary approvals for the merger.
With nearly one-fifth of the voting power now explicitly aligned against the deal, the acquirer faces a steep challenge in rallying sufficient support to proceed.
This development underscores the fragility of the takeover bid and highlights the deep divisions among Bremworth's investor base regarding the company's future direction.