The Vocus Group Ltd (ASX: VOC) share price will be one to watch on Tuesday.
This follows the release of an update on its takeover approach by a consortium owned by Macquarie Infrastructure and Real Assets (MIRA) and Aware Super.
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What did Vocus announce?
This morning the specialist fibre and network solutions provider announced that it has entered into a Scheme Implementation Deed with the consortium.
According to the release, the agreement will see the consortium acquire 100% of the share capital of Vocus for $5.50 cash per share.
This represents a 10% premium to the latest Vocus share price. It is also a 25.6% premium to Vocus' closing price of $4.38 per share on 5 February 2021. This was the day before the offer was first made.
Why is Vocus accepting the offer?
Vocus' Chairman, Bob Mansfield, believes that the offer is in the best interests of shareholders.
He commented: "The Vocus Board is unanimous in our view that this offer is in the best interests of Vocus shareholders. In making this assessment, the Board considered a range of alternatives, including the execution of our existing strategy under which the proceeds of an IPO of Vocus New Zealand would reduce debt and be invested in our core business."
"Feedback from shareholders in recent weeks on the indicative offer of $5.50 originally received from MIRA has been overwhelmingly positive and there is a broad recognition that this is a very fair value for Vocus shareholders," he added.
What now?
The Vocus Board has agreed to unanimously recommend that Vocus shareholders vote in favour of the Scheme. This is in the absence of a superior proposal and subject to an Independent Expert concluding that the Scheme is in their best interests.
Subject to these qualifications, each Vocus director has confirmed that they intend to vote any shares that they hold or control in favour of the Scheme.
Shareholders will be given the opportunity to vote on the takeover at a scheme meeting, which is currently expected to be held in June. After which, if shareholders vote in favour of the scheme, its implementation would occur in July.
