TASK Group Holdings Limited (ASX: TSK) shares are catching the eye on Monday with an incredible gain.
At the time of writing, the small-cap ASX stock is up 91% to 76.5 cents.
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Why is the small-cap ASX stock rocketing?
Investors have been scrambling to buy the hospitality industry technology solutions provider's shares today after it accepted a takeover offer.
According to the release, the company has entered into a scheme implementation agreement (SIA) with PAR Technology Corporation (NYSE: PAR).
PAR is a leading global restaurant technology company and provider of unified commerce for enterprise restaurants. Its restaurant hardware, software, loyalty, drive-through, and back-office solutions is used in more than 70,000 restaurants in more than 110 countries.
Under the SIA, it is proposed that PAR Technology will acquire 100% of TASK's shares by way of a Court-approved scheme of arrangement for a total implied price of $0.81 per share. This represents a 103% premium to where the small-cap ASX stock ended last week. It also values the company's equity at $310 million.
Shareholders will also have the option to receive up to 50% of their consideration in shares of PAR Technology at a ratio of 0.015 PAR Shares for each TASK share held.
Based on the closing price of PAR shares on 8 March of US$43.41, this implies an even greater value of $0.98 per TASK share.
Unanimously recommended
The small-cap stock's board unanimously recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert's report.
TASK shareholders Kym Houden and TASK Retail Investment have each separately advised the company that they intend to vote all shares (in aggregate approximately 18% of issued shares) in favour of the scheme. This is again in the absence of a superior proposal and the independent expert's report.
The company's CEO, Daniel Houden, said:
I am excited by the combination of TASK and PAR. It offers TASK a better base on which to achieve its international ambitions, provides a strong group with significant opportunities for our employees and provides certainty for our shareholders who have supported the growth of TASK to become a meaningful player in the global retail software market.
