At the time of writing the financial technology company’s shares are up 2% to $9.72 and the OneVue share price is up 7.5% to 42.2 cents.
What did Iress announce?
This morning Iress announced that it is making its best and final offer to acquire OneVue.
According to the release, Iress has increased the consideration under the proposed scheme of arrangement from 40 cents per share to 43 cents per share.
The two parties have subsequently entered into an amended scheme implementation agreement which reflects the increased consideration.
Iress’ chief executive, Andrew Walsh, revealed that the company decided to increase its offer following feedback from OneVue shareholders.
He commented: “The original offer price of 40 cents per share was unanimously recommended by the OneVue Board. It was towards the upper end of the independent expert’s valuation range and represented a 67% premium to OneVue’s closing share price on 28 May 2020.”
“While overall feedback from OneVue shareholders has been very positive regarding the Scheme, Iress has considered all shareholder feedback and decided to increase consideration to 43 cents per share to give the Scheme the greatest chance of success. This revised price is at the top of the independent expert’s valuation range of 36 cents to 43 cents per OneVue share and represents a 79% premium to the 28 May 2020 closing share price,” he added.
OneVue directors continue to unanimously recommend that its shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert continuing to conclude that the scheme is in their best interests.
They also note that the independent expert has warned that there could be significant downside risk for OneVue shares if the scheme is unsuccessful.
This was echoed by Iress’ chief executive.
Mr Walsh concluded: “If OneVue shareholders view the offer as attractive, we encourage them to vote in favour. If the Scheme is unsuccessful, the independent expert has indicated there is a risk that the OneVue share price will fall below our original offer. On 28 May 2020, OneVue was trading at 24 cents per share.”