Shares in iCar Asia Ltd (ASX: ICQ) are soaring today following news the company's received an acquisition proposal. Right now, the iCar Asia share price is 41.67% higher than its previous close, with shares in the company trading for 42.5 cents apiece.
Earlier this morning, iCar Asia shares reached 46 cents – a new 52-week high and their highest point since 2016.
iCar Asia develops and operates an internet-based vehicle portal allowing people in Malaysia, Indonesia, and Thailand to buy, sell, and learn about new and used vehicles.
Let's take a look at the news boosting the iCar Asia share price today.
Acquisition proposal
iCar Asia has announced Carsome Group has submitted a non-binding acquisition proposal to buy all iCar Asia shares it doesn't already own for 55 cents apiece.
Carsome is a Singapore-based company operating an automotive e-commerce platform in Malaysia, Indonesia, Thailand, and Singapore.
At 55 cents per share, Carsome has valued iCar Asia at around $243 million.
iCar Asia had a market capitalisation of approximately $132.5 million as of market close yesterday.
Initially, Carsome will buy 89.4 million iCar Asia shares – approximately 19.9% of all outstanding shares in the company – from digital investment group Catcha. Carsome will pay Catcha will newly issued Carsome shares.
Additionally, a joint bid agreement will see Catcha's remaining stake in iCar Asia transferred to Carsome. Once again, Carsome will pay Catcha with newly issued shares.
The acquisition proposal faces several conditions, including receiving joint bid relief from the Australian Securities and Investments Commission, the finalisation of Carsome's financing agreements, and iCar shareholder and court approval.
iCar Asia share price snapshot
Today's gains have put the iCar Asia share price back in the green.
It's now gained 16% year to date. It is also 43% higher than it was this time last year.
The company has around 441 million shares outstanding
