The Mainstream Group Holdings Ltd (ASX: MAI) share price has rocketed more than 7% as it returned to the ASX boards this morning.
Why the Mainstream share price is surging
Mainstream yesterday provided an update on the ongoing takeover battle to acquire all the company's shares. The Aussie financial administrator received an updated offer to acquire its shares. It comes after previous offers from both Vistra and SS&C Solutions Pty Ltd (SS&C).
The Mainstream share price has this morning surged to a new record high of $2.41 per share following an updated offer from SS&C. Mainstream received an unsolicited, non-binding offer from global fund administrator Apex Group Limited (Apex).
The updated Apex offer was for $2.35 per share, which has triggered an increase in the SS&C offer to $2.35 per share. The Revised Scheme of arrangement means that Mainstream has now terminated any discussions with Apex.
Mainstream's Board has concluded that the Revised Scheme is in the best interest of Mainstream shareholders. As a result, the Board has unanimously recommended that Mainstream shareholder vote in favour of the scheme in the absence of a superior proposal.
The updated offer has seen the Mainstream share price rocket higher in early trade. Shares in the Aussie financial administrator are up more than 7% in early trade to a new record high.
Following this morning's move, the company's shares are now up 141% since the start of January. That's almost all attributable to the higher and higher takeover offers received from various parties in 2021.
Foolish takeaway
The Mainstream share price has surged higher this morning after receiving a higher takeover price from SS&C. Mainstream's Board has given its stamp of approval and unanimously recommended shareholders accept the offer.
That means Mainstream is trading at a price to earnings (P/E) ratio of 213.6 with a $328.7 million market capitalisation.
