The Uniti Group Ltd (ASX: UWL) share price is shooting even higher after returning from its trading halt in late trade.
This morning the telco's shares were up 17% before being hurried into a trading halt.
The Uniti share price has now returned to trade and is up a whopping 31% to $4.13.
Why is the Uniti share price racing higher?
Investors were bidding the Uniti share price higher this morning amid speculation that the telco was a takeover target.
This speculation has now been confirmed as being accurate following the release of an announcement out of Uniti this afternoon.
According to the release, titled Project Oatmeal, the company has entered into exclusive discussions with Morrison & Co. in relation to a $4.50 cash per share takeover proposal. This represents a 43% premium to Uniti's last close price.
However, management has warned that these discussions are non-binding, preliminary, highly conditional, and uncertain as to an outcome.
Furthermore, the indicative proposal is subject to a number of conditions. These include satisfactory completion of the bidder's confirmatory due diligence, unanimous recommendation of the transaction from the Uniti Board, and entry into a mutually acceptable scheme implementation agreement.
The latter contains customary exclusivity terms, conditions precedent (including but not limited to FIRB), prescribed occurrences, break fee provisions, and receipt by Morrison & Co of its required internal investment approvals.
The exclusivity period runs until 22 April. In the meantime, Uniti will keep shareholders updated in accordance with its continuous disclosure obligations. It also advised that shareholders should not take any action in relation to the proposal.
