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M&A: There were takeovers galore on the ASX this morning
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It was busy morning for takeovers activity on the ASX even by 2021 standards.
Easily the most prominent deal was Class (ASX:CL1) being acquired by wealth management peer Hub24 (ASX:HUB).
The deal values Class at $386 million, 71.6% higher than what it closed at Friday.
The offer was unanimously backed by Class’ board, as well as 19.9% substantial shareholder Spheria Asset Management.
Class’ share rose accordingly.
Class (ASX:CL1) share price chart
Post-takeover, the companies plan to run their operations as separate business units, but both firms’ bosses said their combined strengths meant the deal was a no brainer and the future growth opportunity was outstanding.
“The completion of this transaction will combine two exceptionally talented teams with a common purpose to empower better financial futures for Australians and provide a unique range of products and services for financial professionals and their clients,” said Hub24’s Andrew Alcock.
Elsewhere
While not a done deal, Senex Energy (ASX:SXY), updated shareholders on a potential takeover from South Korean steel manufacturer POSCO.
POSCO has already had to up its bid twice and it looks like it might have to again. Senex agreed to extend its period to conduct due diligence and assess a further revised proposal higher than the third bid which is $4.40 per share.
While Senex told shareholders it’d be a long road ahead and subject to shareholder and FIRB approval, it said it was in the best interests of shareholders to continue to engage with them.
Another company that’s been a target in recent months is online vehicle marketplace iCar Asia (ASX:ICQ).
Today it signed a formal deal with Carsome Group and unanimously recommended shareholders back the deal.
Senex (ASX:SXY) and iCar Asia (ASX:ICQ) share price chart
A pokies deal
Rounding out today’s takeovers galore on the ASX was pokies company Aristrocat Leisure (ASX:ALL).
Aristocrat announced plans to buy UK-based gambling software provider Playtech (LSE:PTEC).
It will be forking out $5 billion, to be funded through existing cash, new debt and a $1.3 billion rights issue.
Aristocrat said the deal would provide it with material scale and enable it to meet a broader range of customer and player needs. It also promised the deal would deliver attractive financial returns.
“The proposed acquisition continues Aristocrat’s approach of investing in medium to long-term growth and we are extremely excited by the opportunities that this will bring for our shareholders, people, customers and players,” CEO Trevor Crocker declared.
