The Amaysim Australia Ltd (ASX: AYS) share price is flying higher this morning after the company released an announcement in response to recent media speculation.
Amaysim is a subscription utility provider, delivering mobile and energy plans to customers around the country. The company launched in 2010 and is Australia’s fourth-largest mobile service provider.
At the end of last year, Amaysim had 1.05 million total mobile subscribers and 201,000 energy subscribers.
Why the Amaysim share price is spiking today
This morning, Amaysim responded to recent media speculation about potential interest in its energy business.
“amaysim does, from time to time, receive a broad spectrum of interest in relation to its businesses. It is amaysim’s policy not to comment on, or engage with, market or media speculation,” the announcement read.
Shedding a bit more light, the company said, “as requested by the ASX, the company confirms that it engaged Luminis Partners some time ago to assist the Board with considering options to unlock shareholder value, including in respect of the energy business. A data room is maintained for the purpose of facilitating discussions with interested parties.”
Amaysim closed out the announcement by stating it is pleased with its overall performance in the current environment and confirmed it is in compliance with continuous disclosure obligations under the ASX Listing Rules.
Today’s announcement follows a report from the Australian Financial Review (AFR) last night that Origin Energy Ltd (ASX: ORG) is in the Amaysim data room, preparing a bid for Amaysim’s electricity and gas retailer, Click Energy. Amaysim acquired Click Energy in May 2017 for $120 million.
According to the AFR, the data room was originally set up to gauge investor interest in a potential capital injection or takeover. However, bidders quickly narrowed its sights to Amaysim’s energy operations.
The AFR believes the sale process has entered the second round and suitors have been sinking their teeth into detailed diligence measures.
After being up by as much as 21.88% in early trade, the Amaysim share price is sitting 15.62% higher at the time of writing at 37 cents per share.
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