It's proving to be a decent start to the trading week for the All Ordinaries Index (ASX: XAO) and most ASX All Ords shares this Monday. At the time of writing, the All Ords has put on a decent 0.36%. But let's talk about an ASX tech share that is doing a whole lot better than the broader markets today.
The Energy One Ltd (ASX: EOL) share price is on fire this session. Last week, Energy One shares closed at $4.05 each. But today, those same shares opened at $5.32 and are currently up at $5.40. That's a gain worth a whopping 33.33%.
Energy One is a tech share that supplies software and services for use within wholesale energy, environmental, and carbon trading markets
So what on earth is going on here that has seen this ASX tech share rip 33% higher so far today?
ASX tech share rockets after receiving takeover proposal
Well, it seems Energy One shareholders have a takeover proposal to consider right now, which looks like it is the source of this dramatic share price rise that we are seeing.
This morning, Energy One announced that it had received a "confidential, indicative, incomplete, conditional and non-binding proposal" from global investment firm STG to acquire all issued shares of Energy One for an indicative price of $5.85 per share in cash.
That price represents a 44.44% premium over the $4.05 share price that Energy One closed at last Friday.
The announcement describes Energy One's suitor, STG, as a company with "US$10 billion of assets under management and a portfolio that includes software and software-enabled services companies".
In addition to advising investors of this proposal, Energy One's management has also told shareholders that "the Indicative Proposal, if formalised into a binding offer, represents compelling value to shareholders". That's thanks to the significant share price premium discussed above, as well as the "~76% premium to the 3 month volume weighted average price of Energy One's shares prior to 25 August 2023 of A$3.33".
STG isn't the only one…
STG has now been granted an "expedited period of exclusivity" by the Energy One board so that ATG can complete due diligence work. Saying that, Energy One has also revealed that STG wasn't the only party showing an interest in Energy One this year and that others have enjoyed "access to management and comprehensive information".
Energy One's management has told investors that they do not need to take any further action just yet. So stay tuned for any further developments here. But it's certainly been a great start to the week for Energy One shareholders this Monday.
The Energy One share price is now up a healthy 20.22% in 2023 so far, and up 3.05% over the past 12 months:
