Year-end deal rush continues with bids for A2B and Millennium

The news: The holiday rush of M&A action continues with takeover bids announced for A2B and Millennium, sending the targets' share prices skyrocketing.

The numbers: 13Cabs owner A2B has entered into a scheme agreement with fellow transport company ComfortDelGro Corporation, which is offering $1.45 per share. A2B also announced a $0.60 dividend following a property sale, beating expectations and helping lift its share price 21% to $2.16 by Friday afternoon.

Investment manager Millennium's price soared by more than 73% after the board got behind a $1.15 per share bid from SoftBank Robotics Singapore, an 82% premium to yesterday's close of $0.62.

The context: Deals have been ramping up in the leadup to the calendar year-end after a sluggish start. According to BCG research, global M&A activity was down 14% in 2023 to August, and deal value fell by 41%. As inflation and the cost of financing continue to stabilise, there is growing optimism for improving M&A action into 2024.