The PTB Group Ltd (ASX: PTB) share price is metaphorically on cloud nine today. Immense excitement has rallied around the aviation parts and services company after agreeing to a takeover offer.
At the time of writing, shares in PTB are fetching $1.56 apiece, up 35.65% from yesterday's closing price. For comparison, the S&P/ASX 200 Index (ASX; XJO) is up a much more modest 0.18% at 7,126 points.
So, what are the details behind the deal?
PTB share price flies after landing a fitting suitor
It appears the PTB Group proposition was too enticing for one onlooker not to make an offer. According to the release, the Brisbane-based company has entered into a scheme implementation deed with fellow aviation products and repairs business PAG Holding Corp (PAG).
The price agreed upon is $1.595 per PTB share in cash. This represents a 38.7% premium to where the PTB share price finished up on Thursday afternoon. In total, the deal would value the ASX-listed small-cap at $202.9 million.
PAG, or Precision Aviation Group, operates through 10 companies across multiple countries. Notably, the potential acquirer has operations in the United States, Canada, Australia, and Singapore. The provider of aviation servicing carries out business through 16 repair stations, with more than 60,000sqm of sales and service facilities.
Commenting on the proposal, PTB managing director and CEO Stephen Smith said:
We are proud of what the PTB team has created, and the proposed transaction is an endorsement of the quality of our company and the exceptional people that built PTB over a number of years. It also reflects the recent strong trading performance and PTB's growth prospects.
The board of PTB Group believes that PAG would make for a suitable acquirer, one that would be likely to continue to invest in the company's future growth.
What else?
Shareholders are expected to receive a 3 cents per share dividend, adding to the positive for the PTB share price today. Furthermore, this payment is expected to be fully franked.
Additionally, preliminary results were provided for FY22 today. Pleasingly, earnings before interest, tax, depreciation, amortisation, and foreign exchange came in above guidance, at $23.3 million. However, the audited FY22 accounts are expected to land on 26 August 2022.
If all court approvals are received, and shareholders approve of the bid, the scheme is expected to be implemented on 2 December 2022.
The PTB share price is up more than 113% over the last 12 months.
