Shares of Veda Group Ltd (ASX: VED) have re-entered a trading halt today after the company referred to an update in relation to the takeover offer from Equifax just over a fortnight ago.
On September 18, 2015, Equifax offered to acquire 100% of Veda Group, which is an Australian-based data analytics business, for $2.70 per share. That represented a premium of more than 35% above the company’s previous closing price, valuing the business at roughly $2.3 billion.
Although some investors may have found that somewhat compelling it also seemed opportunistic considering the sharp fall experienced by Veda Group’s shares recently, despite announcing double-digit growth for the 2015 financial year. It also forecast further double-digit growth in 2016.
What’s more, Veda Group is set to benefit from the introduction of the comprehensive credit reporting regime. The regime should enhance Veda’s product offering by allowing it to give its clients a more comprehensive overview of individuals and business’ credit histories.
It has since been reported that Veda Group did not believe this growth potential had been reflected in Equifax’s offer price. This could suggest that today’s update will be in relation to an increased bid which could see the shares soar even higher. They’re currently sitting at $2.65 – up from a recent low of $1.99.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- Coronavirus (COVID-19): 6 charts every Australian needs to see – April 6, 2020 1:46pm
- Innovation through crisis – April 2, 2020 11:48am
- Coronavirus (Covid-19): Why Is Italy’s Fatality Rate So Bad? – March 26, 2020 3:39pm