QANTM shares lift as Adamantem seals takeover deal
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More news: Shares in QANTM Intellectual Property rose 2.5% to $1.81 in early trade on the ASX after its board agreed to back a takeover by private equity firm Adamantem Capital.
QANTM's board noted that there was significant uncertainty around the completion, timetable and value for rival bidder IPH’s takeover and instead opted for Adamantem's $1.817 a share proposal.
Takeover target QANTM’s board backs Adamantem bid
The news: QANTM Intellectual Property’s board has signed a binding agreement with private equity suitor Adamantem Capital, backing its $254 million takeover proposal over rival offers.
The numbers: Under the deal, QANTM shareholders will receive $1.817 per share, valuing the company at $254 million, with an option to receive half via an unlisted scrip consideration.
Adamantem has received backing from shareholders holding 19% of QANTM shares. The offer represents a 58% premium to QANTM’s closing price on 26 February.
The stock last closed at $1.76 and over the past 12 months has risen 107.06%.
The context: The deal comes just two days after QANTM’s rival IPH entered the takeover battle, offering its own shares in an offer worth around $250 million. QANTM said its board had considered the proposal, but concluded that there was significant uncertainty around the completion and timetable for IPH’s takeover.
It noted that the value of IPH’s scrip-based takeover was also uncertain given that IPH shares had declined since the offer was initially made.
The Adamantem deal is subject to approval from 75% of QANTM shareholders and if there is no superior proposal. QANTM will appoint an independent expert to assess the deal.
The Sydney-based company QANTM granted Adamantem exclusive due diligence in March, after rejecting an earlier proposal by UK-based rival Rouse International made in February.
The source: ASX announcement
