22/11/2019 - 14:38

APM hikes Konekt takeover offer, again

22/11/2019 - 14:38

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West Perth-based APM has been forced to lift its takeover bid for ASX-listed Konekt for a second time, increasing its offer price from 64 cents to 70 cents per share, to match a second higher offer from competing bidder Maximus.

APM hikes Konekt takeover offer, again
Michael Anghie is the APM (Advanced Personnel Management) group chief executive.

West Perth-based APM has been forced to lift its takeover bid for ASX-listed Konekt for a second time, increasing its offer price from 64 cents to 70 cents per share, to match a second higher offer from competing bidder Maximus.

Konekt said it had received a non-binding proposal from US-based Maximus on November 15 to acquire all Konekt shares for 70 cents per share, inclusive of a 5 cent dividend.

Maximus was also the competing bidder that lodged a proposal for Konekt earlier this month, forcing APM to lift the value of its takeover offer from 49 cents to 64 cents per share.

Konekt said the second proposal from Maximus was subject to gaining consent from counterparty, the Department of Jobs and Small Business and Insurance and Care NSW, in relation to the agreement – a condition already satisfied by APM.

Konekt received its third proposal from Maximus yesterday, still standing at 70 cents per share, which would become binding following meetings with select members of Konekt management.

The company received a further proposal from APM last night.

Konekt said the offer from APM, led by chief executive Michael Anghie, is less conditional and is capable of being implemented in December, and therefore more superior to the third offer from Maximus.

The company said it is no longer negotiating a takeover deal with the US firm.

A deed of amendment and restatement has been signed by both APM and Konekt to give effect to the revised offer.

Konekt directors, who hold a 23 per cent interest in the company, have unanimously recommended shareholders vote in favour of the offer, in absence of a superior proposal.

“The independent expert continues to consider the scheme with APM to be fair and reasonable and in the best interests of Konekt shareholders,” the company said.

The scheme meeting is expected to be held on December 3.

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