Infomedia share price surges 9% following third takeover approach

A graphic showing three hands holding red paddles with the word BID, indicating a bidding war for an ASX share company

A graphic showing three hands holding red paddles with the word BID, indicating a bidding war for an ASX share company

The Infomedia Limited (ASX: IFM) share price has started the week strongly.

In morning trade, the automotive industry software provider’s shares are up 9% to $1.62.

Why is the Infomedia share price charging higher?

The Infomedia share price is rising this morning amid optimism that a bidding war to acquire the software company could be about to ensue. This follows news that a third bidder has tabled a takeover offer this morning.

According to the release, Infomedia has received a further conditional non-binding indicative proposal from Solera Holdings to acquire it for a price of $1.70 per share payable in cash.

Solera is a portfolio company of US based Vista Equity Partners, which is a technology focused investment firm.

The release notes that Solera’s proposal is subject to a number of conditions. These include the completion of due diligence, final approvals, finalisation of financing arrangements, and entry into a scheme implementation deed.

How does this compare to other proposals?

Solera’s offer is in line with the offer made by the TA Consortium and just short of the $1.75 per share offer from Battery Ventures.

The Infomedia board has carefully considered the three proposals and has formed the view that it is in the interests of shareholders to engage further with all three parties. As a result, it has granted the three suitors with due diligence access.

The board also advised that it will continue to act in the best interests of all shareholders and will consider any further proposals that support this objective. It also continues to hold on-going discussions with other interested parties in this regard.

For now, though, it has advised shareholders that they do not need to take any action in response to the indicative proposals. It also warned that there is no certainty that any of the proposals will result in a transaction.

The post Infomedia share price surges 9% following third takeover approach appeared first on The Motley Fool Australia.

Wondering where you should 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 over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Infomedia. The Motley Fool Australia has recommended Infomedia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/r61UWji

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s