QANTM to progress Adamantem takeover, ends Rouse interest
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The news: QANTM Intellectual Property has agreed to grant exclusive due diligence access to Adamantem Capital, after the investment manager's takeover bid trumped an earlier proposal by Rouse International.
The numbers: On Tuesday, Adamantem made an offer to acquire all of QANTM's shares for $1.817 per share with a scrip election of up to 50%. QANTM said that represents a higher price than a proposal from Rouse made on 27 February.
QANTM's board said Adamantem's proposal provides "an attractive premium" for its shareholders, with its value per share representing a 58% premium to its close price on 26 February, the last trading day before the announcement of Rouse's offer.
The context: QANTM and Rouse have agreed to terminate their exclusivity arrangements after the latter withdrew its non-binding indicative proposal made last month.
QANTM's board has agreed to Adamantem's request to undertake a period of exclusive due diligence, with a view to putting forward a binding offer for shareholders' consideration.
The board intends to unanimously recommend that shareholders vote in favour of the transaction, but added the proposal remains subject to the satisfactory completion of due diligence, the negotiation and execution of transaction documentation, and customary conditions.
The source: ASX announcement
