The Australian share market is pushing higher again on Wednesday.
But one ASX 300 stock is rising more than most with a stunning gain in early trade.
Which ASX 300 stock?
The stock that is getting a lot of attention today is Infomedia Ltd (ASX: IFM).
At the time of writing, this auto industry software company's shares are up 28% to $1.69.
The catalyst for this has been news that the ASX 300 stock has entered into a scheme implementation agreement with McQueen BidCo, which is an entity ultimately owned by funds managed or advised by TPG Capital Asia.
The scheme implementation agreement will see TPG Capital Asia acquire all the issued capital of Infomedia by way of a board recommended scheme of arrangement.
According to the release, if the scheme is implemented, Infomedia shareholders will receive a total cash consideration of $1.72 per share, less any permitted dividends declared and paid on or before the date of implementation.
Based on its last close price of $1.32, this represents a 30% premium and an implied equity value of $651 million and an enterprise value of $579 million.
The release also highlights that the ASX 300 stock will be permitted to pay a fully franked ordinary dividend of up to 2 cents per share for FY 2025 and a further special dividend of up to 2.9 cents per share if the scheme proceeds.
The company estimates that this would enable eligible Infomedia shareholders to receive approximately 2.1 cents per share in additional benefit from franking credits, depending on their individual tax circumstances. These franking credits boost the implied total consideration to approximately $1.74 per share.
Offer accepted
The ASX 300 stock's board unanimously recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert's report.
Commenting on the news, Infomedia's chair, Jim Hassell, said:
The Board unanimously recommends this transaction to Infomedia shareholders. The all-cash offer represents a compelling premium of 41% to Infomedia's 3-month VWAP and delivers certainty of value in an increasingly uncertain environment.
The Board considers that the proposal appropriately reflects the strength of Infomedia's platform, the execution of its strategy to date, and the growth opportunities it has created. While we remain confident in the long-term outlook for the business, the Scheme enables shareholders to realise full and fair value now, without the risks and uncertainties associated with continued execution as a standalone listed company.
