It has been a difficult 12 months for the LiveTiles Ltd (ASX: LVT) share price.
But thankfully for its shareholders, there's reason to smile at long last on Tuesday.
In morning trade, the intranet and workplace technology software provider's shares are up 22% to 6.6 cents.
Image source: Getty Images
Why is the LiveTiles share price rocketing higher?
Investors have been bidding the LiveTiles share price higher today after it was confirmed that the company has received a takeover proposal.
According to the release, sales enablement platform provider Bigtincan Holdings Ltd (ASX: BTH) has tabled a confidential, non-binding, indicative proposal to acquire LiveTiles by way of scheme of arrangement.
Under the indicative proposal, LiveTiles shareholders would be entitled to receive 7 cents per share, less any dividends, or distributions paid to shareholders from this day onwards. And while Bigtincan is offering cash to acquire the company, shareholders will be given the option to receive part of the consideration in the form of Bigtincan shares.
Based on LiveTiles' shares outstanding of 923,221,306, this implies a takeover price of approximately $65 million.
However, it is worth noting that discussions between the two parties are preliminary in nature and no agreement has been reached. Bigtincan also warned that there is no certainty that any transaction will eventuate.
LiveTiles has also responded to the news this morning and echoed Bigtincan's warnings. It commented:
The Board of LiveTiles will carefully consider the Proposal and advise shareholders of its views once the Proposal has been assessed. In the meantime, shareholders should not take any action in response to the Proposal. There is no certainty that the Proposal will lead to a definitive transaction or offer being made for LiveTiles.
