In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on the verge of starting the week with a strong gain. At the time of writing, the benchmark index is up 1.35% to 7,492.1 points
Four ASX shares that re climbing more than most today are listed below. Here’s why they are charging higher:
A2 Milk Company Ltd (ASX: A2M)
The a2 Milk share price is up over 3% to $6.05. This gain appears to have been driven by a broker note out of Citi this morning. According to the mote, the broker has upgraded the infant formula company’s shares to a neutral rating with a $6.05 price target. This follows an update by rival Danone which revealed a return to growth for its infant formula sales during the second quarter.
Afterpay Ltd (ASX: APT)
The Afterpay share price has rocketed 20% higher to $116.08. Investors have been fighting to get hold of the company shares after it received a $39 billion takeover proposal by US payments giant Square. The Afterpay Board is recommending investors accept an offer of 0.375 shares of Square Class A common stock for each Afterpay share they hold. Based on the latest Square share price of US$247.26, this implies a transaction price of approximately $126.21 per Afterpay share.
Dicker Data Ltd (ASX: DDR)
The Dicker Data share price has jumped 16% to $13.46 after announcing a key acquisition. The IT distributor has entered into a binding agreement to acquire the Exeed Group business operating across Australia and New Zealand for $68 million. This transaction will see Dicker Data’s New Zealand business become the second largest IT distributor in that market with estimated revenue of over NZ$500 million for the combined entities.
Oil Search Ltd (ASX: OSH)
The Oil Search share price has stormed 5% higher to $4.00. This follows news that Santos Ltd (ASX: STO) and Oil Search have reached an agreement on the merger ratio for a potential merger. Under the revised merger proposal, Oil Search shareholders will receive 0.6275 new Santos shares for each share held. This implies a transaction price of $4.29 per Oil Search share.