Prospa to delist after accepting buyout offer
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The news: Small business lender Prospa is set to delist from the ASX after its board agreed to a takeover by a consortium led by tech investor Salter Brothers Tech Fund.
The numbers: The bidder offered 45 cents a share for Prospa, nearly 22% increase over the company’s closing price on Monday, and valuing the business at $74 million.
Prospa shares were up 12% to 42 cents each in early trading on the ASX.
The context: Prospa chair Gail Pemberton said an independent board committee concluded the deal was in the best interest of shareholders in the absence of a better proposal, and would offer certainty of value in an otherwise illiquid market for Prospa shares.
Shareholders have the option of receiving the cash consideration or rolling over their stake into a new unlisted holding company. The buyout is expected to be completed by August.
Prospa listed on the ASX in 2019 but has struggled over the last few years due to profit downgrades and the impact of pandemic lockdowns on its customers in Australia and New Zealand.
The source: ASX announcement
