The Mainstream Group Holdings Ltd (ASX: MAI) share price has rocketed more than 7% as it returned to the ASX boards this morning.
Why the Mainstream share price is surging
Mainstream yesterday provided an update on the ongoing takeover battle to acquire all the company’s shares. The Aussie financial administrator received an updated offer to acquire its shares. It comes after previous offers from both Vistra and SS&C Solutions Pty Ltd (SS&C).
The Mainstream share price has this morning surged to a new record high of $2.41 per share following an updated offer from SS&C. Mainstream received an unsolicited, non-binding offer from global fund administrator Apex Group Limited (Apex).
The updated Apex offer was for $2.35 per share, which has triggered an increase in the SS&C offer to $2.35 per share. The Revised Scheme of arrangement means that Mainstream has now terminated any discussions with Apex.
Mainstream’s Board has concluded that the Revised Scheme is in the best interest of Mainstream shareholders. As a result, the Board has unanimously recommended that Mainstream shareholder vote in favour of the scheme in the absence of a superior proposal.
The updated offer has seen the Mainstream share price rocket higher in early trade. Shares in the Aussie financial administrator are up more than 7% in early trade to a new record high.
Following this morning’s move, the company’s shares are now up 141% since the start of January. That’s almost all attributable to the higher and higher takeover offers received from various parties in 2021.
Foolish takeaway
The Mainstream share price has surged higher this morning after receiving a higher takeover price from SS&C. Mainstream’s Board has given its stamp of approval and unanimously recommended shareholders accept the offer.
That means Mainstream is trading at a price to earnings (P/E) ratio of 213.6 with a $328.7 million market capitalisation.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- Why the Mainstream (ASX:MAI) share price is up 62% this week
Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MainstreamBPO Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Mainstream (ASX:MAI) share price surges 7% to new record high appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3e64K4q
Leave a Reply