Market Herald logo

Subscribe

Be the first with the news that moves the market
  • APM has proposed to purchase 100 per cent of Konekt shares for 49 cents apiece
  • The Konekt Board intends to declare a fully franked special dividend of up to 5 cents per Konekt Share
  • A scheme booklet will be available to shareholders who will then have the opportunity to vote on the scheme at the start of December
  • Konekt Directors have unanimously recommend that its shareholders should vote in favour of the scheme
  • Konekt is up 65.52 per cent today and is selling shares for 48 cents apiece

Konekt has entered into a scheme implementation deed with Advanced Personnel Management (APM), in which will see APM acquire 100 per cent of Konekt shares.

APM will purchase the shares for a price of 49 cents per share by a court-approved scheme of arrangement.

Konekt’s focus is on helping organisations, individuals, and governments to maximise workforce participation and productivity, while minimising workplace injury.

APM is one of the world’s leading human services organisations. It delivers allied health services, assessment services, psychological intervention, employment assistance, vocational rehabilitation, and community-based services on behalf of governments and private clients.

As part of the scheme, the Konekt Board intends to declare a fully franked special dividend of up to 5 cents per share, with the scheme consideration of 49 cents to be reduced by the special dividend.

“In the event that the Scheme does not become effective, the Special Dividend will not be paid,” the company stated.

Konekt Directors have unanimously recommend that its shareholders vote in favour of the scheme. The company believes that this scheme is fair, reasonable, and in the best interests of shareholders.

“The proposed Scheme is an attractive all-cash transaction at a 69 per cent premium to the prevailing share price. It reflects the strength of the Konekt brand, the dedication of employees and the reputation of our quality services,” Chairman Douglas Flynn said.

According to the company, all of Konekt Directors have said they will vote in favour of the scheme.

APM CEO Michael Anghie is excited to bring the companies together.

“Konekt and APM have always shared a collegial relationship, mutual respect and an alignment in our purpose of enabling better lives,” Michael said.

“We are excited to bring together the complementary businesses of APM and Konekt which will enhance our ability to provide best in class service to our customers, stakeholders and, most importantly, the clients we serve,” he added.

In November, a scheme booklet will be sent out to shareholders, providing information on the proposal. Shareholders will then have the opportunity to vote on the scheme at the start of December.

Konekt has gained 65.52 per cent on the Australian Securities Exchange this morning and is currently selling shares for 48 cents apiece at 12:32 pm AEST.

KKT by the numbers
More From The Market Herald
Challenger (ASX:CGF) - Managing Director and CEO, Nick Hamilton

" Challenger (ASX:CGF) appoints Nick Hamilton as CEO

Challenger (ASX:CGF) has appointed Nick Hamilton as managing director and chief executive officer (CEO), succeeding Richard…
Credit Corp (ASX:CCP) - Non Executive Director, John Nesbitt

" Credit Corp (ASX:CCP) tosses earnings guidance as COVID-19 spreads

Debt collector Credit Corp (ASX:CCP) is following the footsteps of many other ASX 200-listers today by…
Credit Corp Group (ASX:CCP) - CEO, Thomas Beregi

" Credit Corp (ASX:CCP) takes $65M profit hit

Debt collector Credit Corp (ASX:CCP) has encountered a $65 million profit hit due to the COVID-19…
Tyro (ASX:TYR) - CEO, Robbie Cooke

" Tyro (ASX:TYR) joins forces with Bendigo Bank (ASX:BEN) in pivotal alliance

Business banking giant Tyro (ASX:TYR) has teamed up with Bendigo Bank (ASX:BEN) in a new merchant…