M&A: ASX stocks Vocus and Mainstream both accepted takeover bids this morning
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Vocus first received a takeover bid last month, from a consortium made up of Macquarie (specifically its Asset Management arm MIRA) and Aware Super.
Last month, the parties entered into negotiation phase but this morning, Vocus accepted the offer.
The bid is at $5.50 per share, valuing Vocus at $4.6 billion – $3.5 billion of which is equity value.
Vocus’ board has recommended shareholders vote in favour of the offer.
It told shareholders it had considered alternatives such as an IPO of its New Zealand business but shareholders had indicated they liked the offer.
“Feedback from shareholders in recent weeks on the indicative offer of $5.50 originally received from MIRA has been overwhelmingly positive and there is broad recognition that this is very fair value for Vocus shareholders,” said chairman Bob Mansfield.
The takeover timetable indicates a formal vote will be held in June and the deal will be completed in July.
Today’s other takeover bid was made by private equity firm Vistra towards Mainstream (ASX:MAI) which is a fund administrator.
Vistra will pay $1.20 per share which values the company at $180.1 million – an amount that is 300 per cent higher than Mainstream’s 2015 IPO.
The board has indicated it will support the scheme but nevertheless has indicated it is free to solicit competing proposals until April 11.
“The board believe[s] that the offer provides liquidity and certainty to Mainstream shareholders that they may not otherwise achieve by retaining their Mainstream shares,” it said.
“Vistra is viewed as a good strategic and geographic fit for Mainstream and its clients due to Vistra’s existing fund administration capability and footprint.
“If the scheme is successful, Vistra intends to work with Mainstream’s existing management team to drive and accelerate further growth in the business.”
Mainstream’s shareholders meeting is scheduled for late May with the deal being implemented in the middle of June.
While Vocus shares only saw a modest rise this morning after accepting the takeover, they are up 34 per cent in 2021 and 75 per cent in six months. A significant proportion of its gains came after it revealed it had been approached.
Mainstream shares also rose modestly in response to the takeover bid. Neverthless, they have seen substantial growth in recent months having gained over 160 per cent in the past year.