The Vocus Group Ltd (ASX: VOC) share price is edging higher on Tuesday.
In afternoon trade, the telco's shares are up just under 0.5% to $5.50.
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Why is the Vocus share price edging higher?
Investors have been buying the company's shares on Tuesday after its takeover took a major step towards completion.
Earlier today, Vocus held its scheme meeting, allowing shareholders to vote on the takeover proposal from a consortium comprising Macquarie Infrastructure and Real Assets and its managed funds and Aware Super.
The consortium, known as Voyage Australia, has offered $5.50 per share in cash, which values Vocus at an enterprise value of $4.6 billion.
According to today's update, shareholders have voted overwhelmingly in favour of the takeover. The release explains that a total of 99.84% of votes were cast in favour of the scheme resolution, with 93.98% of Vocus shareholders present and voting (either in person or by proxy) in favour of the scheme resolution.
What now?
These results exceed the requisite majorities for the purposes of the Corporations Act 2001 (Cth), paving the way for the takeover to complete in the very near future.
In fact, the company will seek court approval of the scheme at a hearing on Thursday 24 June. If the court approves the scheme, Vocus will lodge the orders with the Australian Securities and Investments Commission, at which time the scheme will become legally effective.
Once this occurs, Vocus will apply for its shares to be suspended from trading on the ASX, with effect from the close of trade on Friday 25 June 2021.
Vocus Chairman, Bob Mansfield, said: "Over the past three years, Vocus has executed an ambitious turnaround strategy that radically simplified our business, our networks, and our technology platforms to reduce costs, expand our reach, and provide better services for our customers. Today's vote is a vindication of that strategy, and recognises the contribution of every Vocus employee towards the successful execution the company's turnaround. This outcome is in the best interests of all shareholders and ideally positions Vocus as it embarks in a new stage of investment."
