The National Veterinary Care Ltd (ASX: NVL) share price is rocketing higher on Monday morning.
At the time of writing the veterinary practice operator's shares are up a massive 54% to $3.65.
Why is the National Veterinary Care share price rocketing higher?
Investors have been fighting to get hold of the company's shares this morning after it revealed that it has entered into a binding scheme implementation deed with Australian Veterinary Owner's League, which is trading as VetPartners.
According to the release, the scheme of implementation will see VetPartners acquire 100% of the issued share capital of National Veterinary Care by way of scheme of arrangement for $3.70 per share in cash.
This represents a 56.8% premium to its last close price. It implies a fully diluted market capitalisation of approximately $251.5 million and an enterprise valuation of approximately $325.5 million.
What now?
National Veterinary Care's directors unanimously recommend that shareholders vote in favour of the scheme. This is in the absence of a superior proposal emerging and subject to the independent expert's report.
Subject to those same qualifications, each director that holds or controls the company's shares intends to vote in favour of the scheme.
The company's chair, Susan Forrester, advised: "VetPartners' proposal represents a significant premium to National Veterinary Care's current share price, is 100% cash consideration and offers National Veterinary Care shareholders a high degree of certainty. We believe the proposal is consistent with the Board's efforts to maximise shareholder value."
National Veterinary Care's managing director, Tomas Steenackers, added: "The coming together of National Veterinary Care and VetPartners is an exciting milestone for both relatively young, fast growing businesses. They are aligned through a collective commitment to clinical excellence and our clients will continue to enjoy high standards of care and a community feel from their local clinics."
"Both businesses also have a shared focus on employees, education and wellness and will be able to offer a wide range of exciting new professional development opportunities for our employees. Together, National Veterinary Care and VetPartners will continue to support and improve the broader veterinary industry across Australia and New Zealand, which has been a core philosophy of National Veterinary Care since it started in 2015," he concluded.
