The Symbio Holdings Ltd (ASX: SYM) share price is avoiding the market selloff and shooting higher.
In morning trade, the ASX tech share is up 20% to $2.70.
Why is this ASX tech share shooting higher?
Investors have been scrambling to buy the cloud-based communication services provider's shares after it received an improved takeover offer from Superloop Ltd (ASX: SLC).
According to the release, Superloop has lifted its offer to $1.425 in cash and 2.14 Superloop shares for each Symbio share.
Based on Superloop's closing price of 69.5 cents per share on 21 September, this implies an offer price of $2.91 per share.
In addition, with Symbio sitting on 15 cents per share worth of franking credits, the offer will lift to $3.06 per share if these are released via a special dividend from the ASX tech share prior to implementation.
The announcement notes that this is the telco's best and final offer and is up from its previous offer of $2.85 per share. Commenting on the deal, Superloop said:
Superloop confirms that it has completed its due diligence assessment of Symbio and affirms its confidence in the commercial merits of the Proposed Transaction and its potential to create significant value for the shareholders of both companies. This due diligence process has further confirmed that the existing terms of the Proposal are compelling and, taking into account all information reviewed, appropriately values Symbio.
Symbio response
The ASX share advised that its board is considering Superloop's revised proposal and discussions remain ongoing.
It also warned that there is no certainty at this stage that any agreement will be reached or that a transaction will eventuate. As a result, it stressed that shareholders do not need to take any action and it will update them as appropriate.
