The IPH Limited (ASX: IPH) share price has climbed 1% higher this morning after QANTM Intellectual Property Ltd (ASX: QIP) confirmed it would not match the updated offer for Xenith IP Group Ltd (ASX: XIP).
What did QANTM announce?
QANTM noted the announcement by Xenith on 8 April 2019 in which it gave the company until 5pm today to match the terms outlined in IPH's updated proposal.
QANTM has notified Zenith that it will not be submitting a revised proposal prior to that deadline.
This comes after months of back-and-forth between QANTM and IPH as they have tussled for the better deal with Xenith, with both transactions recently being approved by the ACCC.
QANTM was for months the preferred offer of the Xenith Board as it did not deem IPH's proposal to be superior, but that all changed on Monday when IPH bumped its offer up to the equivalent of $2.15 per Xenith share.
What are the terms of the IPH deal?
IPH's updated proposal will provide Xenith shareholders with $1.28 cash and 0.1261 IPH shares per Xenith share for a total of $2.15 per Xenith share based on IPH's 5 April 2019 closing price of $6.90 per share.
The Xenith share price is currently unmoved at $2.11 per share, and given the regulatory hurdles have been cleared, I'd expect to see it unchanged prior to the deal completion.
IPH is also providing a "Mix and Match" facility whereby Xenith shareholders may elect to receive 'Maximum Scrip Consideration' (i.e. 100% share-based) or 'Maximum Cash Consideration' (i.e. 100% cash) per Xenith share, subject to scale-back.
Xenith confirmed that the updated proposal constitutes a Compelling Proposal as defined in its Scheme Implementation Deed between Xenith and QANTM, with IPH now seeking to agree and sign the revised proposal with Xenith by 12 April 2019.
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