The Legend Corporation Limited (ASX: LGD) share price is likely to surge higher next week after the electrical solutions group revealed it intends to accept a 36.5 cents per share cash offer from Adamantem Capital.
The deal can also be structured so shareholders can receive 3 cents per share in franking credits from the offer by structuring it so that part of the offer is paid as a special dividend.
Legend reports the offer values its equity at $79.6 million or $100.6 million as an enterprise value business when including the debt. According to management the 36.5 cents per share offer price represents a 22.6% premium to the one-month volume weighted average price.
Legend Chairman, Bruce Higgins said: "The proposed transaction represents a compelling value and liquidity opportunity for all Legend shareholders relative to recent trading prices and volumes."
For the six months ending December 31 2019 Legend made a net profit of $4.1 million on 1.9 cents in earnings per share.
