The Amaysim Australia Ltd (ASX: AYS) share price looks to have been plummeting today, but things aren't always what they seem. The drop comes after yesterday's close, which saw an end to the final day shareholders were entitled to receive a major distribution.
Amaysim is set to delist at the close of trade tomorrow, having previously sold off the majority of its business and then been taken over by WAM Capital Limited (ASX: WAM).
At the time of writing, the Amaysim share price has dropped by 69.18% and is trading at 24.5 cents.
Let's look closer at what's happening with the Amaysim share price today.
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Last hurrah for Amaysim shares
The Amaysim share price seems to have dropped momentously as those shareholders awaiting the company's ex-dividend date cut and run. But the reason for the large fall is that a significant part of Amaysim shares' remaining value was made up of the juicy dividends resulting from the company's sale and takeover.
Those who held shares in Amaysim at the close of trade yesterday will receive a fully franked dividend of 26 cents and a return of capital of 24 cents in late April.
They will also receive a minor distribution of approximately 10 cents in around May, as well as a final distribution of between 7 and 13 cents around October.
As a result, the Amaysim share price has fallen by 55 cents – a similar amount to what investors were guaranteed to receive. Given the value of these distributions was already priced into the Amaysim share price, it is now trading minus the approximate value of these payments.
In late February, Amaysim announced the remainder of its business was being taken over by WAM Capital. This came following Amaysim having previously sold its energy business to AGL Energy Limited (ASX: AGL) and its mobile business to Optus Mobile.
Previously, WAM Capital offered 70 cents in cash for each Amaysim share. That was a 15.6% premium to the one-month volume-weighted average price after the end of October.
After today, any investor still holding Amaysim shares will only be able to have their investment transferred to WAM Capital shares.
Shareholders will automatically receive one WAM Capital share for every 2.675 Amaysim shares they hold at the time of delisting.
