The Intega Group Ltd (ASX: ITG) share price is soaring to new heights after the company entered a scheme implementation deed for a proposed takeover.
Intega has received a takeover bid that would see 100% of its shares bought for 90 cents apiece. The offer is a 58% premium on the Intega share price's previous close and a 95% premium on its last undisturbed close.
That values the company at around $421 million. For context, Intega's previous close saw it with a market capitalisation of around $238 million.
Unsurprisingly, the bid has sent Intega's stock to a new record high.
At the time of writing, the Intega share price is 88 cents, 54.39% higher than its previous close and the highest the company's stock has ever been.
Let's take a closer look at the proposition posed to the engineering services provider.
Image source: Getty Images
Intega enters takeover agreements
The Intega share price is rocketing higher today as the company moves forward with a lavish acquisition offer.
The company posing the 90 cents bid is Kiwa NV, a Dutch company that provides testing, inspection, and certification services to businesses.
The companies have now entered a scheme implementation deed – the first step towards seeing the takeover realised.
Intega says the scheme implementation deed is the result of a strategic review the company undertook into its business.
Intega recommends its shareholders vote in favour of the scheme, as long as it doesn't get a better offer.
Further, the company's largest shareholder, Crescent Capital Partners Shareholders, has confirmed it will vote in favour of the takeover. Crescent Capital Partners Shareholders owns 52.1% of Intega's shares
Making the takeover bid more exciting is the prospect of a special dividend.
If the takeover is delayed beyond December 2021 because Kiwa doesn't receive Foreign Investment Review Board approval in time, it may have to pay Intega shareholders a special dividend.
That could see $2.3 million paid to Intega shareholders for each month the takeover is delayed between January 2022 and June 2022.
Commentary from management
Intega's chair Neville Buch commented on the news:
The scheme provides an opportunity for Intega shareholders to realise their investment in Intega for cash at an attractive premium to where Intega has traded since its demerger from Cardo in 2019. After undertaking a comprehensive strategic review, the Intega board has concluded that the scheme is compelling for our shareholders.
Intega share price snapshot
Today's gains included, the Intega share price is 218% higher than it was at the start of 2021.
The company's stock is also trading for 236% more than it was this time last year.
