Tag: Motley Fool

In late morning trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a disappointing note. At the time of writing, the benchmark index is down 0.7% to 7,034.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

Dubber Corp Ltd (ASX: DUB)

The Dubber share price has jumped 13% to $2.43. This follows the release of the unified call recording and voice intelligence provider’s third quarter update. That update revealed that Dubber’s annualised recurring revenue (ARR) increased 20% over the three months to $34 million. This is also a 158% increase over the prior corresponding period.

Mesoblast limited (ASX: MSB)

The Mesoblast share price has stormed 11.5% higher to $2.04. Investors have been buying the biotech company’s shares following the release of the 60-day results from the randomised controlled trial of remestemcel-L in 222 ventilator-dependent COVID-19 patients with moderate/severe acute respiratory distress syndrome (ARDS). The results show that remestemcel-L reduced mortality through day 60 by 46% in the pre-specified group below age 65.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is up 5.5% to $13.36 following the release of its third quarter update. According to the release, the sports betting company reported a 236% increase in turnover to $905.2 million. This was driven by a 137% jump in Australian turnover to $423.2 million and a 431% increase in US turnover to $482 million. Also growing strongly was its net win, which increased 246% to $64.9 million for the three months.

Sezzle Inc (ASX: SZL)

The Sezzle share price has surged 9% higher to $9.71. Investors have been fighting to get hold of the buy now pay later provider’s shares following the release of its first quarter update and the announcement of plans for a US listing. In respect to the former, Sezzle reported underlying merchant sales (UMS) growth of 214.1% to US$375.1 million for the three months ended 31 March. This was driven by a 126.6% increase in active customers to 2.6 million and a 27th consecutive month of improvement in its repeat usage metric.

More reading

• Sezzle (ASX:SZL) share price shoots higher on Q1 update and US listing plans
• Why the Mesoblast (ASX:MSB) share price is surging 14%
• PointsBet (ASX:PBH) share price jumps on strong Q3 update
• ASX 200 rises, Woolworths falls, Fortescue was flat
• The Sezzle (ASX:SZL) share price is rising on new partnership

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Dubber. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Dubber, Mesoblast, PointsBet, & Sezzle shares are storming higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3vuwdCD

The Boss Energy Ltd (ASX: BOE) share price is up 3.5% in morning trade after closing up more than 7% yesterday.

This comes after the ASX uranium miner released its quarterly activities report for the quarter ending 31 March.

What did Boss Energy report for the quarter?

The Boss Energy share price is moving higher after the company reported significant progress in completing the Enhanced Feasibility Study (EFS) at its Honeymoon uranium project in South Australia.

The aim of the EFS is to reduce costs and increase uranium production capacity at the project. Boss expects to release the results of the study in the June quarter. 

Commenting on the company’s progress during the quarter, Boss Energy’s Managing Director Duncan Craib said:

It was a highly productive quarter which saw us move into the final stages of preparation for the re-start of production at Honeymoon. The technical EFS is almost finished, project funding discussions are underway and interest from fuel buyers continues to increase.

The successful acquisition of 1.25 million pounds of uranium further strengthens Boss’ strategic and commercial advantages in respect to resuming production and capitalising on the forecast increase in uranium prices and our low costs, tier-1 location and extensive JORC Resource.

Total funding estimates for the Honeymoon project is US$63.2 million (AU$81.0 million). According to the release, that makes Honeymoon “one of the lowest funding requirements of any pre-production uranium project worldwide”. Boss credits the project’s existing full processing plant and infrastructure for the low cost of bringing the project online.

Boss is also engaged in an exploration campaign, including an initial scout drill program and has completed its review of Honeymoon’s historical database. It reported a strong balance sheet with no debt and “significant carried-forward tax losses”.

The company stated that the global outlook for nuclear power is improving while the uranium market continues to tighten.

Boss Energy share price snapshot

Boss Energy shareholders have enjoyed a profitable 12 months, with the ASX uranium miner gaining 114%. By comparison, the All Ordinaries Index (ASX: XAO) is up 31% in that same time.

Year-to-date, the Boss Energy share price has continued to perform well, up 50% so far in 2021.

More reading

• iCandy (ASX:ICI) share price sinks despite positive update to ASX
• Why ASX lithium shares like Orocobre (ASX:ORE) soared in April
• Why the Novatti Group (ASX:NOV) share price is tumbling 5% today
• Why Dubber, Mesoblast, PointsBet, & Sezzle shares are storming higher
• Santos (ASX:STO) share price dips despite completed sale

Motley Fool contributor Bernd Struben 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.

The post Why the Boss Energy (ASX:BOE) share price is charging higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2SamG5j

The Santos Ltd (ASX: STO) share price is down slightly today, after news the company finally completed the sale of 25% of its Darwin LNG and BayuUndan projects. The sale has been on the table since March 2020, though it’s been backdated to October 2019.

At the time of writing, the Santos share price is 0.71% to $7.00 per share.

Let’s take a closer look at the energy company’s finalised deal.

Selling stakes in Darwin LNG and BayuUndan

Santos shared this morning that it has finally completed the sale of 25% of Darwin LNG and BayuUndan to global energy provider SK E&S.

SK E&S is also a joint venture partner at Santos’ Barossa project. The company has a 37.5% stake in Barossa, which works to backfill Darwin LNG.

The sell-down has placed US$186 million into Santos’ bank account. That figure represents the sale price of US$390 million minus the cashflows from the 25% interests since October 2019.

In today’s release, Santos also announced the 2 companies have signed a memorandum of understanding to investigate the possibility of extracting carbon-neutral LNG from Barossa. The investigation would include collaboration with Santos’ Moomba CCS project, arrangements for carbon credits and potential for the future development of zero-emissions hydrogen.

At completion of the sell-down, Santos’ interest in BayuUndan and Darwin LNG is 43.4%. Santos is to remain as operator of both assets.

SK E&S is the next largest holder of the projects, with INPEX, Eni, JERA and Tokyo Gas also holding stakes.

Receiving the first gas from Barossa to backfill Darwin LNG is expected to happen the first half of 2025.

Commentary from management

Santos’ managing director and CEO Kevin Gallagher said he was delighted to welcome SK E&S as a partner in BayuUndan and Darwin LNG.

“The sell-down to SK E&S is in-line with our strategy of disciplined growth while maintaining a strong balance sheet by managing equity levels in our growth projects consistent with disciplined capital management,” he said.

Santos share price snapshot

The Santos share price is performing well on the ASX in 2021 so far.

Currently, the Santos share price is up 9% year to date. It’s also up 41% over the last 12 months.

The company has a market capitalisation of around $14 billion, with approximately 2 billion shares outstanding.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why ASX 200 oil shares are eyeing US$80 per barrel Brent crude prices
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• Why the Santos (ASX:STO) share price is on the move today

Motley Fool contributor Brooke Cooper 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.

The post Santos (ASX:STO) share price dips despite completed sale appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2RfhsVm

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The swift expansion of Walt Disney‘s (NYSE: DIS) Disney+ streaming service across multiple countries is largely thanks to Amazon‘s (NASDAQ: AMZN) Amazon Web Services infrastructure, executives from the entertainment conglomerate said today. As reported by Streaming Media and other outlets, Disney says it is increasing its reliance on Amazon Web Services (AWS) even more as it continues to push for wider distribution.

One of Disney’s executive vice presidents, Joe Inzerillo, said in a statement, “AWS has been our preferred cloud provider for years, and its proven global infrastructure and expansive suite of services has contributed meaningfully to the incredible success of Disney+.”

The company says it has been using AWS for its streaming service from the start, well before the late 2019 launch of Disney+, because of its “reliability, scalability, and breadth of functionality.”

Now Disney is adding even more AWS features to its service as it continues to push expansion beyond the 59 countries where Disney+ is already available. These include analytics to ensure efficient delivery of quality streams, database systems enabling immediate switching between shows on different devices, and machine learning.

Disney’s focus on improving Disney+ perhaps reflects its second-tier profitability for the company. While Disney+ is the company’s most widespread streaming service by far, Hulu currently brings in approximately twice the monthly revenue. The House of Mouse also recently inked a deal with Sony Group (NYSE: SONY) to add Spider-Man and a range of other Sony films to its Disney+ lineup, though these will also appear on Hulu. 

For its part, a lockdown-driven surge in home entertainment consumption has led Amazon to invest significantly in its Prime Video service in addition to further developing its streaming infrastructure overall. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Amazon on track to beat Walmart as biggest U.S. retailer by 2025
• Amazon to roll out Prime in-garage grocery delivery nationwide
• Why I sold (some of) my Amazon stock
• 3 things you’ll want to know when Amazon reports Q1 earnings
• Growing pains, or something worse, for Kogan?

Rhian Hunt has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Walt Disney and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Disney says it’s using Amazon’s infrastructure for its worldwide Disney+ expansion appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3u5Z0NI

The RAIZ Invest Ltd (ASX: RZI) share price has slumped 5% this morning after a capital raising update from the Aussie fintech.

Why is the Raiz Invest share price under pressure?

Raiz this morning provided an update on its institutional share placement. The Aussie fintech received firm commitments to raise $10.2 million via an oversubscribed placement backed by new and existing shareholders.

The Raiz Invest share price has slumped lower on the news after raising the cash at $1.50 per share. That represented a 9.4% discount to the final closing price of $1.655 on 27 April 2021.

Following the settlement of the placement, Raiz will offer eligible shareholders the opportunity to participate in a Share Purchase Plan (SPP). Those funds will also be raised at $1.50 per share.

Raiz intends to use the funds to accelerate customer growth, develop new products and services, expand into new geographies and integrate the acquisition of Superestate. The Aussie fintech yesterday announced that acquisition for $9.5 million in an all-scrip transaction.

Superestate is a “niche, integrated superannuation and Australian residential property investment platform”. Raiz Invest Managing Director/Group CEO George Lucas said the acquisition marks an “important milestone for the group”.

“The acquisition provides tangible benefits to the customers of both financial services groups”, he added. Integrating Superestate allows Raiz to add residential property investment to its platform options.

The Raiz Invest share price is slumping lower this morning following the capital raising update. It comes shortly after the group’s quarterly result highlighted by adding nearly 26,000 more active customers.

Today’s placement will result in the placement of 6,800,000 new, fully paid ordinary shares at $1.50 per share. The new shares will rank equally alongside existing Raiz shares with a further 5,300,000 shares raised to acquire Superestate.

Foolish takeaway

The Raiz Invest share price is under pressure early on Friday morning. Investors have pushed the company’s shares lower after the company raised $10.2 million at $1.50 per share.

More reading

• Raiz Invest (ASX:RZI) share price on watch after Q3 update
• The Raiz (ASX: RZI) share price is surging 9% higher today

Motley Fool contributor Ken Hall 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.

The post Why the Raiz Invest (ASX:RZI) share price has slumped 5% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3nAN57X

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are plunging in morning trade after the company’s latest quarterly update was released. At the time of writing, the Electro Optic share price is trading at $4.80, down 5.14%. 

Let’s take a look at how the Aussie technology company has been performing.

Why has the Electro Optic share price dipped?

Electro Optic shares are on the slide today despite the company reporting “considerable progress” in consolidating and progressing key results from 2020. This included new personnel as EOS pushes to become a sovereign Australian prime contractor. Mr David Black joined the board as an independent non-executive director while Mr Michael Lock was appointed CFO in March.

The company reportedly made “strong progress” both in Australia and internationally in its defence systems segment. EOS is now engaged in several programs with the Commonwealth of Australia.

Electro Optic expects to deliver the balance of its September 2020 contract for 251 remote weapon systems (RWA) by Q3 2021. That will bring the number of EOS RWS in service with the Commonwealth of Australia to 530 units.

Meanwhile, Hanwha Defence Australia (HDA) has engaged EOS to provide T2000 turrets for three Redback vehicles undergoing customer evaluation in 2021. EOS is the turret provider for Redback and the preferred supplier for the RWS component.

The Electro Optic share price is not responding positively despite the company providing an update on its C4Edge program involvement. The program has achieved all contract milestones on time and on budget. EOS said this success has led to further expansion of the C4Edge team with another three Australian industry partners added.

EOS also reported, “significant progress” in the Middle East, Europe and the US. This includes a “severely disrupted” major delivery contract in the Middle East impacted by COVID-19. EOS also expects an order in mid-2021 from a NATO member for RWS for remotely operated combat vehicles.

What about other business segments?

There was a continued focus on research and development (R&D) activities in Electro Optic’s space systems segment. This included a “major breakthrough” in laser technology in April which significantly advances the global effort to mitigate space debris.

Electro Optic Systems also reported a strong start to 2021 in its communications systems segment. That includes current-year revenue and EBIT at record levels for its EM Solutions subsidiary. EOS’ US-based subsidiary, SpaceLink, is also on track to meet its June 2024 regulatory deadline to “bring into use” its extensive spectrum allocation for space communications.

Foolish takeaway

The Electro Optic share price is sinking this morning following the company’s latest quarterly update. Shares in the Aussie technology group are down by around 19% in 2021 with a $762.9 million market capitalisation.

More reading

• The War in Afghanistan is ending. Which ASX companies supply our military?
• Why the Electro Optic Systems (ASX:EOS) share price is charging 5% higher

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 Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Electro Optic (ASX: EOS) share price is plunging 5% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/32ZqKaG

The Booktopia Group Ltd (ASX: BKG) share price is catching a break on Friday with the release of its March quarter trading update.

Booktopia is the largest Australian owned online book retailer by market share. Its shares have drifted significantly lower in recent weeks after listing on the ASX on 3 December 2020 at a listing price of $2.30 and closing at a high of $3.00 on 7 December 2020. 

Booktopia March quarter highlights 

The Booktopia share price opened 3.5% higher to $2.42 on Friday. The company delivered a solid set of March quarter results across all operational and financial metrics. Against the prior corresponding period, its quarterly revenue increased 53% to $65.0 million while underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 267% to $4.2 million. 

From a year-to-date perspective, its revenues have increased 50% to $177.8 million, underlying EBITDA increased 256% to $12.1 million with a total of 6.33 million products (units) shipped. 

The company believes it is on track to achieve its upgraded full year revenue forecast of $217.6 million and underlying EBITDA of $12.9 million. This would represent a respective 31% and 115% increase on FY20 figures. 

Management commentary 

Booktopia Chief Executive Officer Tony Nash commented on the strong set of results: 

The previous corresponding quarter (January to March 2020) was the first trading period impacted by widespread lockdowns and the rapid growth of e-commerce. It is promising to see the changes in consumer behavior that marked that period continue into the new year despite the absence of long-term lockdowns. Millions of Australians have now been introduced to the world of e-commerce and will continue to appreciate the convenience and value presented by online shopping. We expect demand to continue to grow for the foreseeable future as the overall market for online books grows and we continue to take more market share.

Booktopia share price snapshot

After its $2.30 listing price, Booktopia shares climbed as high as $3.00 before sliding to a record low close of $2.34 on Thursday.

But Booktopia isn’t the only stock that’s experienced the IPO boom-and-bust phenomenon. Other newly listed shares such as Credit Clear Ltd (ASX: CCR), Douugh Ltd (ASX: DOU), MyDeal.com.au Ltd (ASX: MYD) and Adore Beauty Group Ltd (ASX: ABY) have all experienced similar share price performances.

More reading

• 2 highly rated small cap ASX shares you need to know
• 2 rapidly growing small cap ASX shares to watch
• Why the Booktopia (ASX:BKG) share price is climbing today
• 2 of the best small cap ASX shares to watch

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited and Booktopia Group 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 Booktopia (ASX:BKG) share price lifts on strong quarterly update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3xx02Ey

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is trading lower on Friday morning.

At the time of writing, the banking giant’s shares are down 0.3% to $28.85.

Why is the ANZ share price trading lower?

The ANZ share price has come under a spot of pressure this morning after the bank released an update on notable items that will be included in its upcoming first half results.

According to the release, ANZ’s first half cash earnings after tax will be impacted by $817 million of notable items. This is the equivalent to ~5 basis points of CET1 capital.

This $817 million includes previously announced items totalling $260 million and $557 million of new items.

In respect to the previously announced items, these include $48 million after tax for a class action settlement in the United States and $212 million after tax relating to equity accounted losses from AmBank.

What are the new items?

There are four new items impacting ANZ’s cash earnings.

The first is a further $135 million after tax impact from equity accounted losses from AmBank. This relates to goodwill impairment recognised by AmBank at 31 March 2021.

The largest is a $251 million after tax item relating to the write-down of goodwill attributable to the ANZ Share Investing business. This is a result of this business being reclassified as held-for-sale, reflecting a continuation of the bank’s simplification strategy.

The third item is $108 million after tax of additional customer remediation charges.

And finally, ANZ will recognise restructuring charges and other smaller divestment impacts of $63 million after tax.

When does ANZ release its results?

ANZ is scheduled to release its results on Wednesday 5 May. And with the ANZ share price up 25% since the start of the year, expectations certainly are high.

As I mentioned here, Goldman Sachs is expecting the banking giant to report first half cash earnings (pre-one offs) of $3,073 million. This will be a 117% increase on the prior corresponding period, which  was impacted greatly by COVID-19.

More reading

• Why ASX bank shares may be facing a big sell-off in the next few weeks
• What to expect from the ANZ (ASX:ANZ) half year result
• 2 highly rated ASX dividend shares
• 2 quality ASX dividend shares for May
• ASX bank shares best placed to ride the $1bn+ provisioning profit boost this reporting season

Motley Fool contributor James Mickleboro 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.

The post ANZ (ASX:ANZ) share price lower after announcing $817m earnings impact appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3vAjOgJ

The Japara Healthcare Ltd (ASX: JHC) share price is rocketing in early-morning trade following the announcement of a takeover offer.

At the time of writing, the aged care provider’s shares are swapping hands for 98.5 cents, up 23.1%.

Details of the offer

Investors are driving Japara shares higher after digesting the company’s latest release.

In its announcement, Japara advised it has received a takeover proposal from Little Company of Mary Health Care Ltd (Calvary).

Founded in 1885, Little Company of Mary Health Care (also known as Calvary Health Care) provides community and aged care services. The group operates 14 public and private hospitals, 17 retirement and aged care facilities, and a number of community care centres throughout Australia.

The notice is an unsolicited, indicative, conditional, and non-binding proposal. Calvary plans to acquire 100% of the shareholding in Japara by way of a Scheme of Arrangement.

The indicative cash price offered to Japara shareholders is listed as $1.04 per share.

The company noted that the offer price takes into account that no dividends, distributions, or reductions in capital are paid. In addition, no material changes may occur from the date of the takeover notice. This is to ensure that the business does not significantly change in value from what Calvary has offered.

For the proposal to move forward, Japara would need to meet a number of conditions. This includes completion of due diligence, negotiation and executing the scheme arrangement, and unanimous recommendation by the board.

Japara management stated that it has not formed and view and will look into the offer along with business continuity. Trading conditions are expected to improve, and the group is waiting to hear the Australian federal government’s response to the Royal Commission next month.

The Royal Commission looked into aged care quality and safety in October 2018. In March this year, the final report was released, listing 148 recommendations.

Lastly, Japara advised that it will update shareholders and the ASX in due course of the board’s outcome.

About the Japara share price

The Japara share price has gained 60% in the past 12 months, and is up close to 30% year-to-date.

On valuation grounds, Japara commands a market capitalisation of around $213 million, with 267.2 million shares on issue.

More reading

• Mainstream (ASX:MAI) share price surges 7% to new record high
• Douugh (ASX:DOU) share price rises after first full quarter in the US
• Not too late to buy these small ASX mining shares for the commodities boom
• Sezzle (ASX:SZL) share price shoots higher on Q1 update and US listing plans
• Why the Mesoblast (ASX:MSB) share price is surging 14%

Motley Fool contributor Aaron Teboneras 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.

The post Why the Japara (ASX:JHC) share price is rocketing 23% in morning trade appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2QzzGBl

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.

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