- Fund manager OneVue (OVH) has received a surprise takeover bid from stock market software specialist Iress
- Iress is offering to take control of OneVue for 40 cents per share — valuing the deal at $107 million
- The offer price is a 66.7 per cent premium to OneVue's last closing share price
- To help fund the deal, Iress has launched a $170 million capital raising plan
- The cash will be raised through a share placement and a share purchase plan, with all new Iress shares priced at $10.42 each
- OneVue shares have surged over 56 per cent up today, current worth 38 cents each
- Iress shares are in a trading halt
Fund management specialist OneVue (OVH) has received a surprise $107 million takeover bid from stock market software company Iress (IRE).
The takeover is set to be completed through a scheme implementation agreement. Iress will cough up 40 cents per OneVue share under the deal, representing a healthy 66.7 premium to OVH's last closing share price of 24 cents.
The OneVue board has unanimously recommended shareholders vote in favour of the deal.
The company said each OneVue Director will be using their voting power to support the takeover unless a better offer comes along.
OneVue Managing Director Connie Mckeage said the Iress offer provides "compelling certainty" for OneVue shareholders.
"Iress is a company we have significant respect for and we know they are committed to delivering high levels of service to our clients and are looking forward to working more closely alongside our clients and partners," Connie said.
Iress CEO Andrew Walsh shared similar sentiments, speaking highly of OneVue's technology and service offering.
"A combined Iress and OneVue will provide a compelling proposition to both OneVue and Iress’ clients as market dynamics continue to change," Andrew said.
"This includes the development of software and services that brings advice and investments closer together, resulting in greater efficiency and productivity for professional advisers and business in Australia," he said.
Importantly, the buyout is not subject to any due diligence or financing conditions. This means so long as the deal receives regulatory and shareholder approval, it's full steam ahead for the acquisition.
Iress raising funds
To help fund the buyout, Iress has announced a $170 million capital raising plan today.
Under the plan, $150 million will be raised through a fully underwritten placement, with the remaining $20 million through a share purchase plan.
New shares up for grabs under both the placement and the purchase plan will be priced at $10.42 each, which represents a seven per cent discount to Iress' last closing price of $11.21 per share.
OneVue shares have surged ahead to sit just below Iress' offer price in early afternoon trade. Currently, shares in OVH are up 56.3 per cent and worth 37.5 cents each.
Iress shares are in a trading halt today.