Shares in Qube Holdings Ltd (ASX: QUB) have rocketed to a record high after the company announced that Macquarie Asset Management had launched a takeover bid for the company.
Macquarie Asset Management (MAM) is offering $5.20 per share for the logistics provider, well above its last trading price of $4.07 and substantially more than the shares' highest level over the past 12 months of $4.59.
Qube shares jumped 16.7% to be changing hands for $4.75 early on Monday.
The takeover bid is conditional on several matters, including satisfactory due diligence and a unanimous recommendation for the Qube board.
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Board backs the deal
The board said in a statement to the ASX on Monday that it had granted Macquarie a period of exclusive due diligence until 1 February.
The company said further:
The proposal follows an earlier unsolicited, non-binding and indicative offer at a lower value and a period of negotiation, which included the provision of limited due diligence information to facilitate a meaningfully improved proposal from MAM. After careful evaluation of the Proposal, the Board of Qube determined it appropriate to enter into a Process Deed with MAM. The Process Deed grants MAM a period of exclusive due diligence access from the date of the deed until 1 February 2026.
The Qube board has indicated that, at this stage, the directors intend to unanimously support the proposal in the absence of a better offer and subject to an independent expert's report concluding that the deal is in the best interests of shareholders.
Qube Chair John Bevan said:
The proposal from Macquarie Asset Management is a reflection of the strength of Qube's business model and our assets, and the quality of our people and culture. We look forward to continuing to engage constructively in the best interests of our shareholders.
Under the agreement announced to the ASX on Monday, the Qube board has also agreed to allow MAM to match any competing bid that might arise.
Qube travelling well
Qube last financial year reported record underlying revenue of $4.46 billion, up 27.3%, and lifted its fully franked dividend by 7.1% to 9.8 cents per share.
Managing Director Paul Digney told the company's recent annual general meeting that in the first quarter of the current financial year, the company's performance across all markets had been in line with expectations.
Based on the performance to date, the company was expecting to deliver "solid" underlying earnings per share and net profit growth over the full year, Mr Digney said.
The company did receive a high vote against its remuneration report, with the votes against its adoption coming in at 18.3%.
