The Macquarie Group Ltd (ASX: MQG) share price is sagging during early morning trade on Monday. This comes after the investment bank announced a share purchase plan (SPP) for eligible investors along with its shares going ex-dividend.

At the time of writing, Macquarie shares are down 1.14% to $200.12 apiece.

Macquarie opens share purchase plan

In its release, Macquarie Group advised that it will conduct a SPP to raise additional funds to support its growth strategy.

Last week, the company completed a $1.5 billion institutional placement, resulting in the issuance of 7.7 million shares.

The SPP price will be the lower of $191.28 or a 2% discount on the 5-day volume-weighted average price up until the closing date.

It’s worth noting that SPP shares will be issued after the record date for the 1H22 dividend and will not be eligible to receive the dividend.

The closing date for the SPP is 26 November.

Macquarie goes ex-dividend

While the company has been busy on the news front, investors will be eyeing Macquarie shares as they go ex-dividend today.

Typically, one day before the record date, the ex-dividend date, is when investors must have purchased Macquarie shares. If the investor does not buy Macquarie shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

What does this mean for Macquarie shareholders?

For those eligible for Macquarie’s first-half dividend, shareholders will receive a payment of $2.72 per share on 14 December. The dividend is also partially franked which means that shareholders can expect to receive tax credits from this.

Investors who elect for the dividend reinvestment plan (DRP) will have no discount applied to the volume-weighted average price. This is for the 5 trading days leading up to and inclusive of the ex-dividend date.

The payout ratio of 50% is in line with Macquarie’s dividend policy (50% to 70% annual payout ratio).

Macquarie share price summary

It has been an outstanding year for Macquarie shares, trekking 45% higher for 2021 and nearly 50% for the last 12 months. The company’s shares reached an all-time high of $204.22 last Friday.

Based on today’s price, Macquarie commands a market capitalisation of roughly $74 billion, and has approximately 376.65 million shares outstanding.

The post Why is the Macquarie (ASX:MQG) share price sliding lower today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Why did the Macquarie (ASX:MQG) share price have such a great month in October?
• Here’s why JP Morgan sees more growth in Macquarie (ASX:MQG) shares
• Which ASX bank shares were the best performers during October?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price has been a positive performer on Monday.

In morning trade, the banking giant’s shares are outperforming the banking sector and up 1.5% to $22.89.

Why is the Westpac share price rising today?

This morning Westpac announced that the latest Independent Reviewer’s report on its integrated plan to improve risk governance has been released. This is part of an enforceable undertaking agreed in December with APRA, following issues found in Westpac’s risk governance.

As of 30 September, Westpac had submitted 121 of 327 activities to the independent reviewer for assessment. Of the activities submitted, 102 were assessed as complete and effective, with the assessment of the remaining 19 still underway.

Westpac also highlights that the report notes that the banking giant’s progress with its integrated plan is on track.

Investors could be pleased with this news and may have been bidding the Westpac share price higher in response.

Anything else?

With the Westpac share price sinking 12% last week following the release of its full year results, some investors may have been swooping in today on the belief that its shares were oversold.

One broker that appears to believe this is the case is Morgans.

Last week while many brokers were downgrading the bank’s shares, its analysts retained their buy rating and lifted their price target on Westpac’s shares to $30.50.

Based on the current Westpac share price, this suggests there’s potential upside of 33% for investors over the next 12 months.

And with Morgans forecasting a $1.23 per share fully franked dividend in FY 2022, the total potential return stretches to over 38%.

While the broker acknowledges that Westpac’s net interest margin disappointed, it feels the selloff was an overreaction and created more value for investors.

The post Why is the Westpac (ASX:WBC) share price outperforming on Monday? appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Why is the Westpac (ASX:WBC) share price sinking again today?
• 5 things to watch on the ASX 200 on Friday
• How did the Westpac (ASX:WBC) share price perform in October?
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

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The AGL Energy Limited (ASX: AGL) share price has battled through a shocking 30 days over which it has fallen a significant 10.2%. Shares in the company are currently trading for $5.61 a piece.

The energy provider’s dip came despite it maintaining its silence. In fact, the company hasn’t released any price-sensitive news to the market since August.

On top of that, market watchers are likely keeping an eye on the AGL share price ahead of its planned demerger, set to go ahead later this financial year.

While AGL’s stock has been suffering, that of its competitor, Origin Energy Ltd (ASX: ORG) is staying relatively flat.

Over the last 30 days, the Origin share price has gained 0.7% to reach $5.11.

Let’s take a look at what’s keeping the Origin share price broadly afloat while that of AGL is sinking.

Origin share price outperforms that of AGL

While the embattled AGL has been quiet on the ASX over the last month, the market has heard an avalanche of news from Origin.

The announcements began when Origin’s annual general meeting was held on 20 October. There, the company’s CEO Frank Calabria stated that its outlook for financial year 2022 had improved.

According to Calabria, the company expects its energy markets business to post a stronger performance than was previously predicted. It came after global demand for oil and liquid natural gas (LNG) increased unexpectedly.

The following week, Origin announced it had agreed to sell a 10% stake in Australia Pacific LNG for $2.12 billion. The Origin share price gained 3.8% on the back of the news. Origin will retain a 27.5% holding in the joint venture following the sale.

Though, the party didn’t last long for AGL’s competitor’s share price. Origin’s stock’s value slid 1.3% on 29 October after the company released an update on its performance through the first quarter of financial year 2022.

Foolish takeaway

While a flood of news seems to have kept the Origin share price afloat over the last 30 days, AGL’s silence hasn’t allowed its stock the same buoyancy.

At the time of writing, the AGL share price is 53% lower than it was at the start of 2021. It has also fallen 56% since this time last year.

The post Why is the AGL (ASX:AGL) share price underperforming Origin lately? appeared first on The Motley Fool Australia.

More reading

• How did the AGL (ASX:AGL) share price perform in October?
• The top performing ASX 200 energy shares in October unmasked
• Is the AGL Energy (ASX:AGL) share price a value trap?
• Origin (ASX:ORG) share price slides on mixed energy market sales
• 3 ASX shares the ‘Aussie Berkshire Hathaway’ loves the most right now

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

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The NIB Holdings Ltd (ASX: NHF) share price is edging lower on Monday morning. This comes after the private health insurer announced an update on the takeover of a life and living insurance products and services company.

At the time of writing, NIB shares are fetching for $7.21, down 1.23%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.06% to 7,461 points.

What did NIB announce?

According to its announcement, NIB advised that its New Zealand subsidiary nib NZ has agreed to purchase Kiwi Insurance. The latter is a wholly-owned subsidiary of Wellington-based Kiwi Group Holdings.

The total consideration to acquire 100% of the shares in Kiwi Insurance is said to be around $43 million. However, this deal is subject to outstanding regulatory approvals.

In addition to the takeover, nib NZ will enter into an exclusive arrangement with Kiwibank, another subsidiary of Kiwi Group. The bank will refer its retail customers to nib for life and living insurance needs, increasing its members by another 34,000.

NIB is planning on funding the acquisition through a combination of existing capital and new debt. Pleasingly, the transaction is expected to be accretive to earnings per share (EPS).

Completion of the deal is being targeted for early 2022.

The acquisition is also expected to not have a material financial impact on the group’s FY22’s earnings.

NIB managing director Mark Fitzgibbon commented:

In New Zealand, living, life and health insurance are complementary products so often purchased as a package. We‘re responding to this preference with what should be a more integrated and seamless experience for members and customers. And it means more people will benefit from the investment we’re making in more personalised health risk assessment and management.

NIB share price snapshot

NIB shares have been on the move since this time last year, rocketing 66% over the period. When looking at year-to-date, its shares are up around 21%.

Based on today’s price, NIB commands a market capitalisation of roughly $3.32 billion and has approximately 458 million shares outstanding.

The post NIB (ASX:NHF) share price backtracks despite acquisition news appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why the NIB (ASX:NHF) share price is one of the best performers on the ASX 200 today
• Why CSR, Hipages, NIB, and Paladin Energy shares are racing higher
• ASX 200 (ASX:XJO) midday update: Zip’s record month, Domino’s crashes
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Aaron Teboneras owns shares of NIB Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Commonwealth Bank of Australia (ASX: CBA) share price opened in the green this morning amid news the bank is working with a leading Silicon Valley-based artificial intelligence (AI) company.

CBA has partnered with, and bought a minority holding in, H2O.ai. Under their agreement, the operator of cloud-based machine learning platform H2O AI Cloud will provide CBA with its product and work to create new solutions for the bank.

The CBA share price popped at market open on Monday, rising to $109.98, before dipping into the red. At the time of writing, CBA shares are creeping back up to $109.90, 0.17% higher than the previous close.

For context, the broader market followed a similar pattern this morning, popping on open before dipping into the red. Right now, the S&P/ASX 200 Index (ASX: XJO) is down 0.09% while the All Ordinaries Index (ASX: XAO) is down 0.11%.

Let’s take a closer look at today’s news from CBA.

CBA banking on AI-led future

The CBA share price is up after the bank announced its latest push to increase trust, confidence and engagement in its business.

The bank plans to use AI to help its customers save money while shopping across, and drive sales to, platforms including Little Birdie, Karta, CommBank Rewards, and Klarna.

The technology will also help the bank’s retail and business customers predict bills and forecast cash flows. It could potentially predict energy use and, thus, help lower carbon emissions.

H2O.ai provides AI services to more than 20,000 organisations, including more than half of the Fortune 500. It also employs the top 20 Kaggle grandmasters – a title given to best-in-the-world data scientists and machine learning practitioners.

CBA is now the AI company’s exclusive financial services partner in Australia and New Zealand.

The bank’s CEO, Matt Comyn, commented on the partnership:

This partnership will accelerate our ability to deliver a broader customer proposition through more personalised experiences, which delivers greater value for our customers… the more our customers engage with us, the better we are able to anticipate their needs.

H2O.ai’s founder and CEO, Sri Ambati, said the partnership “will be fun”:

[It] will unleash the juggernaut of co-innovation in AI for payments and further democratise AI with trust and freedom. Our vision is not only to make CBA an AI superpower but make Australia an AI nation as we move to life after COVID.

CBA’s partnership with H2O.ai is the latest step the bank has taken to embrace data and technology within its business. Earlier this year, CBA entered a joint venture with data science firm Quantium. Under the joint venture, the two entities will provide data to governments, businesses, and investors.  

CBA share price snapshot

It’s been a great month so far for the CBA share price. Since the end of October, the bank’s stock value has increased around 5%.

CBA shares have gained 33% since the start of 2021 and 57% since this time last year.

The post CBA (ASX:CBA) share price gains amid Silicon Valley AI partnership appeared first on The Motley Fool Australia.

More reading

• Own CBA shares? Here’s how the share price performed in October
• Brokers name 2 excellent ASX 200 dividend shares to buy
• What these three experts are saying about the CBA crypto service
• ASX 200 (ASX:XJO) midday update: CBA enters crypto market, AMP jumps
• CBA (ASX:CBA) just became the first Aussie bank to offer Bitcoin and crypto services

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

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The Australian Pharmaceutical Industries Ltd (ASX: API) share price is starting the week on a positive note.

In morning trade, the pharmacy chain operator and distributor’s shares are up 3% to $1.53.

Why is the API share price rising today?

Investors have been bidding the API share price higher today after it provided an update on the Wesfarmers Ltd (ASX: WES) takeover proposal.

According to the release, API has accepted a $1.55 cash per share offer from Wesfarmers to acquire 100% of the shares it does not already own via a scheme of arrangement. This will be reduced by any dividends that API pays between now and closing.

This offer represents a 35.4% premium to the undisturbed closing API share price on 9 July 2021 (prior to Wesfarmers’ first offer of $1.38 per share).

What’s the latest?

The API Board is unanimously recommending that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert’s report.

Each director intends to vote all of the API shares held or controlled by them in favour of the deal.

Though, the release highlights that there are a few customary conditions that require satisfying before the deal completes. These include API shareholder approval, court approval, ACCC approval, no material adverse change, and no prescribed occurrences. Two things the deal is not subject to are due diligence and financing.

A scheme meeting of API shareholders is expected to be held in the first quarter of calendar year 2022. If approved, the scheme will then be implemented shortly after and API will form the basis of a new healthcare division of Wesfarmers.

Following today’s gain, the API share price has now climbed 21% since the start of the year.

The post API (ASX:API) share price higher after accepting Wesfarmers takeover offer appeared first on The Motley Fool Australia.

More reading

• Wesfarmers (ASX:WES) share price rises on API takeover deal
• Wesfarmers (ASX:WES) share price lifts as rival drops out of race for API
• 2 top ASX 200 shares that might be buys today
• Why did the Wesfarmers (ASX:WES) share price have such a great month in October?
• What were the best performing ASX real estate shares to hold in October?

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 no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bitcoin (CRYPTO: BTC) price is up 2.5% since this time yesterday, currently trading for US$62,961 (AU$85,082).

That’s down 5.9% from the fresh record of US$66,930 set on 20 October.

But the Bitcoin price still remains at historic highs. And it’s gained 310% over the past 12 months alone.

While those lofty gains will come as good news to crypto investors, it could be putting unwanted pressure on humanity’s goal to slash our global carbon output.

Why?

Soaring energy use as Bitcoin price at record highs

While you can’t actually hold them, or see them for that matter, most cryptos use a tremendous amount of energy.

In the case of Bitcoin, each transaction is verified through the blockchain. Meaning every time a token is bought or sold, numerous powerful computers across the world are employed by “miners” to confirm its legitimacy. And those computers, taken together, use a tremendous amount of electricity.

How much?

According to a study by the University of Cambridge, in 2020 Bitcoin used as much energy as all of the Netherlands, a nation with more than 17 million people. The same study showed Bitcoin used almost as much energy as all of the global gold mining activity.

That’s not a good look when nations, companies and individuals across the planet are being asked to cut their carbon emissions amid a renewed push at COP26.

Making matters worse is that alongside the rocketing Bitcoin price, crypto mining activity is picking up pace.

According to Markets Insider:

As more people start mining, the hash rate rises. Alex de Vries, founder of bitcoin energy data service Digiconomist, told Insider that it “seems inevitable” that the hash rate and electricity consumption will soon hit a new high, given the current bitcoin price.

But it’s not all bad news for Bitcoin enthusiasts.

As the Bitcoin price has been marching higher, the token’s miners have increasingly been turning to renewable energy sources to power their machines.

According to the Bitcoin Mining Council, in Q3 2021, 57.7% of the token’s energy use came from sustainable sources. That was driven in part by the exodus of miners out of China following the nation’s crackdown earlier this year. This saw an influx of miners into North America, where they have much greater access to renewable energy.

Aussie institutions embracing cryptos

High energy use or not, as the Bitcoin price traded near record highs, Australians saw the first crypto linked exchange traded fund (ETF) launch on the ASX last week. And the BetaShares Crypto Innovators ETF (ASX: CRYP) didn’t disappoint, seeing a record volume of trades for an ETF on its first day. (Details here.)

Commenting on the launch of the crypto ETF, Sunil Kaushik, spokesperson for global crypto platform Gemini said:

This is an exciting development not only for the crypto industry in Australia, but globally. Australian investors now have an opportunity to benefit from the growth of the blockchain economy. This disruptive technology is still in its nascency, and this listing puts Australia at the forefront of the blockchain revolution.

Where the Bitcoin price goes to from here is anyone’s guess. But with cryptos likely here to stay, the move to renewable energy sources to power their blockchain networks is welcome.

The post The Bitcoin (CRYPTO:BTC) price is still leaping higher, and so is its energy use appeared first on The Motley Fool Australia.

More reading

• Could ANZ be the next ASX bank to jump on the crypto bandwagon?
• Own NAB shares? Here’s the bank’s proposal to stop crypto mania getting ‘really ugly’
• What these three experts are saying about the CBA crypto service
• The Ethereum (CRYPTO: ETH) price just hit all-time highs after a strong October
• The first crypto ETF (ASX:CRYP) has just hit the boards. Here’s what you should know

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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.

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While the outlook for interest rates is improving, it is still likely to be some time before they reach normal levels again.

In light of this, at least for the time being, the share market arguably remains the best place to earn a passive income.

But which ASX dividend shares should you consider buying? Two that are rated highly are listed below. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first dividend share to look at is Accent. It is a footwear-focused retail giant which owns a collection of popular store brands including HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot.

The popularity of these brands and their growing footprints have underpinned strong sales, profit, and dividend growth over the last few years. And while lockdowns have made it unlikely for Accent to achieve further growth in FY 2022, the long term looks very positive.

It is for this reason that the team at Bell Potter has put a buy rating and $2.90 price target on its shares. Bell Potter likes the company partly for its shift in strategic focus to innovation in its core business and expansion through new concepts and small targeted acquisitions.

The broker is forecasting fully franked dividends per share of 9.3 cents in FY 2022 and 13.3 cents in FY 2023. Based on the latest Accent share price of $2.54, this represents yields of 3.65% and 5.2%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another ASX dividend share for income investors to look at is the Charter Hall Social Infrastructure REIT. As its name implies, this real estate investment trust focuses on investing in social infrastructure properties.

These properties include childcare centres, government sites, and healthcare buildings. The company added to its portfolio last week with the acquisition of two premium childcare assets in Queensland and a healthcare property owned by Healius Ltd (ASX: HLS) for a total of $58.4 million.

Goldman Sachs was pleased with the acquisitions. In response, the broker retained its conviction buy rating, increased its price target to $3.91, and lifted its FY 2022 dividend estimate to 16.9 cents per share.

Based on the current Charter Hall Social Infrastructure REIT share price of $3.83, this implies a dividend yield of 4.4% for investors.

The post 2 buy-rated ASX dividend shares appeared first on The Motley Fool Australia.

More reading

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• 2 quality ASX dividend shares with 4%+ yields

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Senex Energy Ltd (ASX: SXY) share price is pushing higher on Monday morning.

At the time of writing, the energy producer’s shares are up 4.5% to $4.65.

Why is the Senex share price charging higher?

The Senex share price is on the move today after revealing that it has received a further improved non-binding proposal from POSCO International Corporation.

According to the release, POSCO has increased its takeover proposal to $4.60 cash per share.

This is up from previous offers of $4.00 per share in July, $4.20 per share in August, and $4.40 per share in September. In addition, the company notes that it still intends to pay shareholders a 5 cents per share dividend for the six months ending 31 December.

Will a deal be done?

On this occasion, the Senex Board appear pleased with POSCO’s offer.

Subject to negotiating an acceptable scheme implementation agreement, no superior proposal, and the independent expert’s report, the Senex Board intends to unanimously recommend that shareholders vote in favour of the proposed transaction.

It also notes that it has agreed to extend POSCO’s exclusivity period to 26 November. This is to provide time to negotiate and enter into a binding agreement and for POSCO to obtain its internal approvals. POSCO has confirmed to Senex that it has now completed all of its due diligence enquiries.

Senex highlights that during the diligence process, it provided information to POSCO in respect of its proposed acquisition of APLNG natural gas fields PL 209 and PL 445 for $80 million, which was announced to the market today. POSCO has confirmed to Senex that its cash offer price is inclusive of the value attributable to the proposed acquisition of these natural gas fields.

POSCO also informed Senex that it wishes to enter into discussions and share information with Hancock Energy. This is regarding the possible participation of Hancock should the proposed scheme be successful.

The Senex share price is up a massive 84% in 2021.

The post Senex (ASX:SXY) share price charges higher after agreeing takeover deal with POSCO appeared first on The Motley Fool Australia.

More reading

• Why MyDeal, Senex, Superloop, and Vulcan shares are surging higher
• Senex (ASX:SXY) share price jumps 16% to multi-year high amid takeover talks

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 no position in any of the stocks mentioned. 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.

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The Wesfarmers Ltd (ASX: WES) share price is pushing higher on Monday following the release of an update on its takeover approach for Australian Pharmaceutical Industries Ltd (ASX: API).

At the time of writing, the conglomerate’s shares are up slightly to $60.74.

Wesfarmers share price higher after takeover update

Investors have been bidding the Wesfarmers share price higher today after it reached an agreement with Priceline pharmacy chain operator Australian Pharmaceutical Industries (API).

According to the release, the two parties have entered into a scheme implementation deed (SID) under which it is proposed that Wesfarmers will acquire 100% of the shares in API that it does not already own via a scheme of arrangement.

Wesfarmers will be paying a cash consideration of $1.55 per API share, less any dividends that are paid. While this represents only a modest premium to the latest API share price, it is a 35.4% premium to its undisturbed closing share price on 9 July 2021.

What now?

The API Board is unanimously recommending that API shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to the independent expert’s report. Each director intends to vote all of the API shares held or controlled by them in favour of it.

The scheme remains subject to customary conditions, including API shareholder approval, court approval, ACCC approval, no material adverse change, and no prescribed occurrences. However, the scheme is not subject to due diligence or financing. The SID also contains exclusivity provisions for Wesfarmers and reciprocal break fees payable in certain circumstances.

Why acquire API?

Wesfarmers’ Managing Director, Rob Scott, expects the acquisition of API to provide an attractive opportunity to enter the growing health, wellbeing, and beauty sector.

He said: “Wesfarmers continues to see opportunities to invest in and strengthen the competitive position of API and its community pharmacy partners by expanding ranges, improving supply chain capabilities and enhancing the online experience for customers.”

Mr Scott also revealed that Wesfarmers will not be making any changes to API’s community pharmacy model.

“In addition to our discussions with API management, we have engaged with industry stakeholders during due diligence. As we have previously stated, Wesfarmers supports the community pharmacy model, including the pharmacy ownership and location rules. Wesfarmers recognises the importance of strong relationships with our trading partners and we look forward to working closely with API’s pharmacy partners, suppliers and other industry stakeholders,” he added.

The Wesfarmers share price is up 18% in 2021.

The post Wesfarmers (ASX:WES) share price rises on API takeover deal appeared first on The Motley Fool Australia.

More reading

• Wesfarmers (ASX:WES) share price lifts as rival drops out of race for API
• 2 top ASX 200 shares that might be buys today
• Why did the Wesfarmers (ASX:WES) share price have such a great month in October?
• What were the best performing ASX real estate shares to hold in October?
• What’s going on with the Wesfarmers (ASX:WES) API takeover bid?

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 no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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