The Vocus Group Ltd (ASX: VOC) share price is going bananas after receiving a takeover offer.
Vocus is a vertically integrated telecommunications service provider, operating in the Australia and New Zealand markets. Thanks to a merger with M2 Group, it is responsible for numerous retail and business telco brands, such as Primus.
What’s Going On With Vocus?
The telco business has confirmed that it has received a confidential, non-binding, indicative proposal from EQT Infrastructure to acquire all of Vocus’ shares.
The offer price is at a price of $5.25 per share, which would be implemented by way of a scheme of arrangement if accepted.
The $5.25 takeover price per share is a 35% premium to the closing price last week on Friday, which seems to be priced for the offer to get through.
However, the offer comes with a number of conditions including: due diligence, securing committed finance and unanimous recommendation from the Vocus Board. The takeover would also need all the required approvals like court approval and regulatory approvals.
The Vocus Board has granted EQT non-exclusive due diligence to allow EQT to potentially put forward a formal binding proposal to Vocus. Vocus warned that this could take a number of weeks.
The Vocus Board said that there is no guarantee that this process or the indicative proposal will result in a formal offer to Vocus, but shareholders don’t need to take any action at this point.
To help with the process, Vocus has appointed UBS as its financial adviser and Allens as its legal adviser.
What To Do Now?
Vocus will update the market if anything else happens. If I were a Vocus shareholder who had been wanting to sell for a while then I might take this opportunity to sell, otherwise shareholders should just sit tight as the Vocus Board said.
In any case, I would rather own shares of one of the reliable ASX shares in the free report below over Vocus, so I’d be a happy seller.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.