Whispir shares rocket after takeover offer from Soprano

The news: Shares in Whispir have surged after the ASX-listed software company received a $62.7 million takeover offer from major shareholder and rival Soprano Design.

The numbers: Soprano, which has already built up a 15% stake in Whispir, has offered 48 cents a share to its shareholders. This is a 60% premium to Whispir’s Friday closing price of 30 cents a share. Whispir shares surged in early trading to match the offer price of 48 cents a share.

The context: The Sydney-based Soprano said its cash offer is "best and final" and will not be increased in the absence of an alternative proposal or a competing proposal. It said the offer provides certainty for Whispir shareholders in the face of “poor operational and financial metrics".

What they said: “The Whispir share price has underperformed due to ongoing losses and capital raises. We feel the company, its technology, its employees and customers would benefit significantly from a period of focused private ownership,” Soprano chairman Richard Favero said in a statement.