The Hansen Technologies Limited (ASX: HSN) share price has jumped over 20% this morning after a takeover offer.
What’s happening to the Hansen share price?
Hansen said that it has received a non-binding, conditional proposal from BGH Capital of $6.50 per share.
That represented a 25% premium to the $5.18 closing price on Friday, 4 June 2021. It was also a 33% premium to the average share price over the last six months.
This offer values Hansen Technologies at an enterprise value of $1.3 billion.
The offer price will be reduced by the value of any dividends declared or paid. The price also assumes that Hansen achieves its FY21 earnings guidance.
How will the company respond?
The board has thought about it and decided it’s in the interests of shareholders to progress the proposal. All directors, other than Andrew Hansen, intend to unanimously recommend the proposal.
Hansen’s Managing Director and CEO Andrew Hansen has agreed to worth with BGH Capital to implement the proposal pursuant to a co-operation agreement.
Mr Hansen is a director of Othonna, which acts as the trustee of the Hansen Property Trust, a substantial shareholder of Hansen. Mr Hansen has agreed to use his best endeavours to promptly get Othonna to do what’s needed to do so that Mr Hansen can carry out his tasks under the co-operation agreement.
It’s proposed that Mr Hansen and the Hansen Property Trust will receive some or all of their consideration in the form of shares in the holding company.
So, the board is going to put in formal protocols in relation to Mr Hansen’s access to information and employees, and attendance at board meetings.
A period of exclusive due diligence has been granted, with the execution of a process and exclusivity deed.
Summary thoughts about this offer and the Hansen share price
This is a good offer and it seems quite likely to go through considering Mr Hansen is working with the bidder.
I’d be happy if I were a shareholder. I’d also want to look for other ASX growth shares that could be future opportunities.
