ResApp share price halted ahead of Pfizer takeover update

ResApp shares have been placed on ice pending a company update.

| More on:
Female doctor with a mask holds out hand in a stop gesture.

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

Key points

  • ResApp shares are halted at 11 cents on Tuesday
  • The company is preparing to make an announcement in relation to its proposed takeover by pharmaceutical giant Pfizer
  • ResApp shares are expected to resume trading on or before this Thursday

The ResApp Health Ltd (ASX: RAP) share price won’t be going anywhere on Tuesday.

This comes as the company requested its shares be placed in a trading halt.

At the time of writing, shares in the digital health company are frozen at 11 cents apiece.

Details of the ResApp share price halt

Prior to the market opening, the company requested trading in its shares be halted while it prepares an announcement.

According to the company’s release, ResApp is planning to provide an update regarding a proposed acquisition by Pfizer Australia.

The global biopharmaceutical giant offered to purchase ResApp for 11.5 cents per share in cash. In total, this represents an equity value of around $100 million.

Following the proposal, ResApp’s directors unanimously recommended its shareholders vote in favour of the scheme of arrangement.

However, for the deal to go ahead, certain regulatory approvals need to be met. This includes being given the nod from the Australian Competition and Consumer Commission (ACCC).

ResApp has requested the trading halt remains in place until Thursday 2 June or when the announcement is made, whichever comes first.

Quick take on ResApp

ResApp is a digital health company that specialises in developing smartphone apps for the diagnostics and management of respiratory diseases.

Machine learning algorithms use sound to detect and measure a variety of breathing conditions, such as restricted breathing, snoring, and coughing.

Its regulatory-approved products include ResAppDx and SleepCheck, which are both approved for sale and marketing in Australia and Europe.

ResApp share price snapshot

Since this time last year, ResApp shares have more than doubled in value to register a gain of around 110%.

In 2022, the company’s shares are 70% higher on the back of the Pfizer takeover offer.

Based on valuation grounds, ResApp presides a market capitalisation of roughly $94.5 million.

Motley Fool contributor Aaron Teboneras 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

Four PointsBet customers and football fans put heads in hands and look disappointed while watching television
Technology Shares

Betmakers share price slips despite new $20 million deal

The betting technology provider has amended a key contract. Here are the details.

Read more »

One young boy jumps off a step ladder and is captured mid-air about to land on a seesaw where his friend is standing with a wide smile on his face looking at the camera and holding his thumbs up as though he is excited for the ride to come. Both young boys are wearing business suits.
Mergers & Acquisitions

Nearmap share price jumps 30% on takeover news

The Nearmap share price rallied 33% to $2.01 in early trade on Monday, but remains below the bid price.

Read more »

A frustrated young woman shopper holds her hands up with a pained, annoyed expression on her face as she stands next to her trolley in a grocery store and examines the stock offerings on the shelf in front of her.
Mergers & Acquisitions

Woolworths share price slides following MyDeal ACCC nod

MyDeal shareholders will vote on the proposed acquisition next month.

Read more »

A person with a round-mouthed expression clutches a device screen and looks shocked and surprised.
Consumer Staples & Discretionary Shares

iSelect share price explodes 75% on takeover news

The iSelect share price is sky high after the company revealed a takeover offer from the owner of www.comparethemarket.com.au.

Read more »

Two men in business attire play chess.
Resources Shares

OZ Minerals ‘completely in play’: Broker on BHP takeover bid

BHP's bid for OZ Minerals may not be over...

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Mergers & Acquisitions

Macquarie share price slips despite rumours $3.7 billion acquisition imminent

French company Veolia is divesting itself of the assets to resolve antitrust concerns raised in May by UK regulators.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Mergers & Acquisitions

The OZ Minerals share price is rocketing 35% after BHP bid

Despite knocking back a takeover bid, OZ Minerals shares are going nuts.

Read more »

An investor looks happy holding a finger to his computer screen while holding a coffee cup in a home office scenario.
Mergers & Acquisitions

BHP share price lifts as $8.3b takeover bid rejected

The iron ore giant proposed to snap up its ASX 200 copper-focused peer for $25 per share.

Read more »