QV Equities shares lift on WAM Leaders buy out
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More news: Shares in QV Equities jumped on the ASX after investment company WAM Leaders agreed to acquire its smaller rival.
QV Equities shares were trading 6.5% higher at $0.99 by 1:10pm AEDT while WAM Leaders edged 0.36% higher to $1.39.
WAM Leaders to acquire rival QV Equities
The news: Listed investment company WAM Leaders has agreed to buy out smaller rival QV Equities, expanding its asset base.
The numbers: WAM Leaders will acquire 100% of QV shares with the latter’s shareholders having the option to receive either new WAM Leaders shares, cash or a combination of both.
QV shareholders will not be offered a fixed number of shares in WAM Leaders, with scrip consideration to be based on the pre-tax net tangible assets per share on an agreed calculation date. The cash consideration will be at a 2.5% discount to QV’s pre-tax NTA per share.
The context: WAM Leaders chair Geoff Wilson said the deal will result in a strong merged entity leveraging Wilson Asset Management’s investment strategy and experience in managing listed investment companies.
WAM had acquired up to 15% in the Investors Mutual-owned QV Equities, according to media reports last year. The deal follows the announcement by WAM Leaders of a takeover offer in January. The transaction is expected to be completed by mid-July.
The source: ASX announcement
