Why is the ResApp share price lifting today?

Progress on a takeover bid for the company has been announced.

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Key points
  • Shareholders have given the green light on a takeover proposal from Pfizer
  • The court must approve it for the deal to proceed
  • The deal is expected to close on the 23rd of September

The ResApp Health Ltd (ASX: RAP) share price is in the green today as investors digest the latest news on Pfizer's proposed takeover bid.

Shares in the ASX healthcare company are up 0.98%, trading at 21 cents at the time of writing after shareholders yesterday approved the scheme of arrangement for Pfizer to acquire 100% of ResApp's shares.

ResMed advised the next step of the takeover process would involve a second court hearing at the Supreme Court of New South Wales to be held on Tuesday next week.

For the bid to be accepted, the Supreme Court must first approve it on the condition that it's in the best interest of ResApp shareholders. Also, any remaining conditions must be either satisfied or waived before the hearing.

If these conditions are met, the deal is expected to complete on 23 September. The last date that ResApp shares will trade on the ASX will be Wednesday, 14 September.

Pfizer upgraded its bid to 20.8 cents per share on Saturday last week, up from 14.6 cents per share.

That puts ResApp's valuation in the $198.8 million ballpark at the time of writing.

A group of people in a corporate setting do a collective high five.

Image source: Getty Images

ResApp share price snapshot

The ResApp share price is up a stunning 195.7% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 10.77% over the same period.

The company's market capitalisation is $178.3 million at the time of writing.

Motley Fool contributor Matthew Farley 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 Scott Phillips.

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