The MSL Solutions Ltd (ASX: MSL) share price is having a day to remember.
At one stage today, the shares of the SaaS technology provider to the sports, leisure, and hospitality sectors were up 61% to 29 cents.
The MSL share price has pulled back a touch since then and is currently up 57% to 28.2 cents.
Why is the MSL share price is rocketing higher?
Investors have been scrambling to buy this tech share on Tuesday after it announced a takeover approach from an entity controlled by Pemba Capital Partners.
According to the release, the company has entered into a scheme implementation agreement that will see it acquired for 29.5 cents cash per share by way of a scheme of arrangement.
This implies an equity value of $119 million and represents a premium of 63.9% over the MSL share price at yesterdayâs close. It is also an 80.7% premium to the one-month volume weighted average price.
MSLâs board of directors believes the scheme is in the best interests of shareholders. As a result, it unanimously recommends that MSL shareholders vote in favour of the scheme. The board intends to vote all MSL shares held or controlled in favour of the scheme.
Though, this is all in the absence of a superior proposal and subject to the independent expert concluding that the scheme is in the best interests of shareholders.
The scheme also remains subject to a number of conditions which must be satisfied or waived before it can be implemented.
MSLâs executive chairman, Tony Toohey, commented:
Our board of directors has undertaken lengthy negotiations with Pemba (a leading investor in small and mid-sized businesses in Australia and New Zealand) to secure an offer which delivers certainty of consideration to our shareholders at a significant premium to the recent historical MSL share prices.
The post Guess which ASX tech share just rocketed 60% on takeover news appeared first on The Motley Fool Australia.
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