ASX's TPG mix-up due to 'inadvertent human error'
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More news: The ASX group executive markets and listings Darren Yip has pointed to "an inadvertent human error" as the cause of an announcement mix-up that saw TPG Telecom's stock fall sharply this morning before the bourse operator cancelled trades made prior to a pause.
The ASX said it contacted all market participants affected by the cancellation prior to resuming trade on TPG Telecom shares.
Yip noted that once the error was discovered it was escalated to him and he understands that "it has caused disruption for TPG Telecom and its investors".
“This mistake shouldn’t have happened and we are reviewing our internal processes to understand if there are additional safeguards or procedures we could implement to reduce the risk of a similar reoccurrence," Yip added.
Yip said he will be apologising directly to the team at TPG Telecom. ASX managing director and CEO Helen Lofthouse has sought out her counterpart at TPG Telecom, Iñaki Berroeta, to personally apologise.
TPG Telecom wants answers after ASX mix-up
More news: TPG Telecom is seeking an explanation from the operator of the ASX after a price-sensitive announcement relating to NYSE-listed asset manager TPG was incorrectly cross-referenced with the telco's ticker.
A TPG Telecom spokesperson claimed that the "unrelated announcement caused confusion among investors resulting in a sharp drop in our share price" before entering a trading pause at 10:15am AEST. Trades made prior to the pause have now been cancelled.
TPG Telecom first flagged the error with the ASX and Infomedia, the acquisition target of asset manager TPG, about 10 minutes after the announcement was made.
"While we welcome the ASX’s decision to cancel trades made during this window, we expect a full explanation of how the error occurred and what steps will be taken to prevent similar incidents in future," the spokesperson said.
Trading in TPG Telecom shares resumed at 12:38pm and had fallen 2.2% by 1:05pm AEST. Shares in ASX Limited had slipped 1.5%.
Infomedia shares rocket on $651m takeover; TPG Telecom slumps on ASX mix-up
More news: Software provider Infomedia saw its shares leap in early trading after the small cap received a $651 million takeover offer from global asset manager TPG.
Infomedia shares were up 27.5% to $1.68 at 11:15am AEST. TPG's offer price was $1.72 per share.
Meanwhile, telco group TPG Telecom has entered a trading halt on the ASX, having seen its share price slide 4.3% in early trading.
The price sensitive takeover announcement had been incorrectly attached to the ASX ticker for TPG Telecom this morning. The telco's ticker is the same as Infomedia's NYSE-listed suitor.
TPG Telecom confirmed that all trades in its shares today, prior to its trading halt, will be cancelled. Shares will remain paused while the cancellation is processed, it said.
TPG to acquire software small cap Infomedia in $651m deal
The news: Global asset manager TPG has agreed to buy all the shares in Australian software provider Infomedia in a $651 million takeover.
The numbers: The companies have entered into a scheme implementation agreement, which would see Infomedia shareholders receive $1.72 per share in cash, representing a 41% premium to its three-month volume-weighted average price. Infomedia shares last closed at $1.32 per share.
The cash consideration represents an implied equity value of $651 million and an enterprise value of $579 million.
The context: Infomedia's board has unanimously recommended that the company's shareholders vote in favour of the scheme.
The deal is subject to a number of customary conditions, including approval by Infomedia shareholders at a scheme meeting set for November.
TPG said it is well positioned to accelerate Infomedia's international expansion across the Asia Pacific region, EMEA and the Americas.
ASX small cap Infomedia is a provider of software-as-a-service and data-as-a-service solutions for the automotive industry's parts and service sector.
What they said: "Infomedia has grown to become a market-leading software provider to the highly resilient and growing auto parts and servicing end-market," said Joel Thickins, co-head of TPG Asia and head of TPG Australia and New Zealand.
"Together with its experienced management team, the company has continued to innovate and improve its software solutions, with significant opportunities for further international expansion."
The sources: ASX, ASX, ASX media release
