Hansen (ASX:HSN) share price rockets 22% on takeover approach

Private equity is making a play for this billing technology company…

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The Hansen Technologies Limited (ASX: HSN) share price is charging higher on Monday morning.

At the time of writing, the billing technology company’s shares are up 22% to $6.33.

Why is the Hansen share price charging higher?

Investors have been bidding the Hansen share price higher today amid news that the company has received a takeover approach.

According to the release, Hansen has received an unsolicited, preliminary, conditional and non-binding proposal from BGH Capital to acquire 100% of the outstanding shares in Hansen by way of a scheme of arrangement for a price of $6.50 cash per share.

Based on the Hansen share price at the close of play on Friday, this takeover offer represents a 25% premium. This will be reduced by the value of any dividends or other distributions declared, proposed or paid after the date of the offer letter. The price also assumes that Hansen achieves its FY 2021 earnings guidance.

What now?

The Hansen Board has considered the proposal, taking into account the prospects of the company and their aim of maximising value for shareholders. Following this, it has determined that progressing the proposal is in the interests of all shareholders.

The directors of Hansen, other than Andrew Hansen, intend to unanimously recommend the proposal to shareholders, subject to the parties entering into a binding scheme implementation deed and the independent expert’s report.

Whereas Hansen’s Managing Director and CEO, Andrew Hansen, has agreed to work together exclusively with BGH Capital to seek to implement the proposal pursuant to a co-operation agreement. As part of the agreement, Mr Hansen has agreed to vote in favour of any scheme of arrangement and will not vote in favour of any competing proposal during an exclusivity period.

In the meantime, Hansen will continue to keep the market informed of any material developments in accordance with its continuous disclosure requirements.

It has also warned that there is no certainty that the proposal will result in a transaction being put forward to shareholders for consideration. As a result, shareholders do not need to take any action in relation to the proposal at this time.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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