The Bigtincan Holdings Ltd (ASX: BTH) share price is ending the week in style.
In morning trade, the sales enablement automation platform provider's shares are up 15% to 78 cents.
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Why is this tech share flying high?
Investors have been scrambling to buy Bigtincan shares today after the company received a takeover approach.
According to the release, the company has received an unsolicited, indicative, conditional and non-binding proposal from SQN Investors to acquire all of the shares in Bigtincan for $0.80 cash per share by way of scheme of arrangement.
This represents a 17.6% premium to the where the tech share ended yesterday's session.
SQN is already a substantial holder of Bigtincan and has a relevant interest in 74,940,121 shares or approximately 13.6% of its issued share capital. Farouk Hussein, a partner of SQN, has been a director of Bigtincan since October 2021.
The investment company revealed that it aims to fund the proposal by a combination of equity and possibly debt financing. However, it does not currently have binding commitments in that regard.
Will it be accepted?
As things stand, SQN has not been provided due diligence access.
However, the Bigtincan board has established an Independent Board Committee (IBC), comprising its current independent non-executive directors and its CEO and executive director, David Keane, to evaluate and respond to the proposal.
It is also worth noting that the SQN bid may not be the only one to consider. Bigtincan also explained that it has had preliminary discussions with other interested parties who have approached the company with indications of interest in respect of a potential control transaction.
The IBC will consider the proposals in an orderly manner with its advisers and in the best interests of all Bigtincan shareholders.
