Vocus (ASX:VOC) share price higher on takeover update

This telco may not be on the ASX boards for much longer..

A happy man looks at his smart phone, indicating a share price rise for ASX tech shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Vocus Group Ltd (ASX: VOC) share price is edging higher on Tuesday.

In afternoon trade, the telco's shares are up just under 0.5% to $5.50.

Why is the Vocus share price edging higher?

Investors have been buying the company's shares on Tuesday after its takeover took a major step towards completion.

Earlier today, Vocus held its scheme meeting, allowing shareholders to vote on the takeover proposal from a consortium comprising Macquarie Infrastructure and Real Assets and its managed funds and Aware Super.

The consortium, known as Voyage Australia, has offered $5.50 per share in cash, which values Vocus at an enterprise value of $4.6 billion.

According to today's update, shareholders have voted overwhelmingly in favour of the takeover. The release explains that a total of 99.84% of votes were cast in favour of the scheme resolution, with 93.98% of Vocus shareholders present and voting (either in person or by proxy) in favour of the scheme resolution.

What now?

These results exceed the requisite majorities for the purposes of the Corporations Act 2001 (Cth), paving the way for the takeover to complete in the very near future.

In fact, the company will seek court approval of the scheme at a hearing on Thursday 24 June. If the court approves the scheme, Vocus will lodge the orders with the Australian Securities and Investments Commission, at which time the scheme will become legally effective.

Once this occurs, Vocus will apply for its shares to be suspended from trading on the ASX, with effect from the close of trade on Friday 25 June 2021.

Vocus Chairman, Bob Mansfield, said: "Over the past three years, Vocus has executed an ambitious turnaround strategy that radically simplified our business, our networks, and our technology platforms to reduce costs, expand our reach, and provide better services for our customers. Today's vote is a vindication of that strategy, and recognises the contribution of every Vocus employee towards the successful execution the company's turnaround. This outcome is in the best interests of all shareholders and ideally positions Vocus as it embarks in a new stage of investment."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Mergers & Acquisitions

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Mergers & Acquisitions

APM share price placed on ice as $1.8 billion deal goes dud

It's all question marks and raised eyebrows for shareholders of this ASX company today.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
Mergers & Acquisitions

Could Star Entertainment shares be next in line to catch a takeover bid?

Star shares have been battered, but could a buyout be coming?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Bank Shares

Own CBA shares? Here's the tech stock the banking giant just invested in

CBA has made an interesting investment. Here's what you need to know.

Read more »

Man pointing at a blue rising share price graph.
Mergers & Acquisitions

Guess which ASX 300 stock is rocketing 10% on a $985 million cash bid!

Investors are piling into the ASX 300 stock on the back of a $985 million cash takeover bid.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Mergers & Acquisitions

Guess which ASX blue-chip share is throwing $202 million at another acquisition

This Aussie healthcare company is growing its presence in Switzerland.

Read more »

A man stands with his arms crossed in an X shape.
Mergers & Acquisitions

Boral share price falls after rejecting Seven Group takeover

The offer 'undervalues' Boral according to its committee.

Read more »

Miner looking at a tablet.
Materials Shares

Mineral Resources share price marching higher on new lithium project acquisition

ASX 200 investors are bidding up the Mineral Resources share price on Monday.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Technology Shares

Appen shares plunges 17% after takeover collapse

Well that didn't take long...

Read more »