Shares of software services provider Kewill Plc (KWL.L) surged 25 percent on Wednesday morning, after it agreed for a recommended cash offer by Kinetic Bidco Ltd., for about 89.5 million pounds.
Kinetic Bidco is an investment vehicle indirectly owned by the Francisco Partners Funds. Francisco Partners believes that the acquisition represents an attractive opportunity to invest in supply chain software sector.
As per the terms, the acquisition values Kewill share capital at about 89.5 million pounds, net of option proceeds. Kewill shareholders will be entitled to receive 96 pence in cash, for each Kewill share they hold. This represents a premium of about 26.3 percent. to the closing price of 76 pence per Kewill share on May 1, the last business day prior to this announcement.
It also represents a premium of 35.8 percent over the volume weighted average price of 70.7 pence per Kewill share in the month prior to the date and 32.8 percent over the average price of 72.3 pence per share in the three months prior to the date.
Kewill noted that it intends the acquisition be implemented by means of a court-sanctioned scheme of arrangement,
Kewill Directors have agreed unanimously to recommend that Kewill shareholders vote in favor of the Scheme at the Court Meeting and the resolutions to be proposed at the General Meeting.
Commenting on the acquisition, George Elliott, chairman of Kewill said, "Given the ongoing challenges faced by the business, including the meaningful contribution to operating profit from our reverse logistics business which we intend to exit, we firmly believe that this transaction is in the best interests of all Kewill stakeholders, including our shareholders, employees, customers and partners."
KWL.L is currently trading at 95.25 pence, up 19.25 pence or 25.33 percent, on a volume of 2.41 million shares on the LSE, against a three-month average volume of 76,441 shares.
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