The Iress Ltd (ASX: IRE) share price is zooming over 4% higher after more takeover offer news.
Revised takeover offer from EGT
Iress said it has received a revised takeover offer from funds represented by EGT Fund Management (EGT).
EGT has been circling and has already made two previous offers in June 2021 with a $14.80 price per share and July 2021 with a price between $15.30 and $15.50 per share.
The new offer from EGT is an implied value of $15.91 per share (before franking credits). This breaks down to a cash component of $15.75 per share and an FY21 interim dividend of up to 16 cents per share for eligible shareholders.
Iress said that previous offers from EGT did not include an interim dividend.
The Iress board said that intends to recommend the takeover offer to shareholders.
What value does this represent for the Iress share price?
Iress management said that the offer is an “attractive premium” to recent trading levels.
The offer price is 45.3% higher than the share price of $10.95 on 9 June 2021, which was the last trading day before takeover offers were made.
EGT’s takeover offer represents Iress equity value of $3.1 billion with an enterprise value of $3.2 billion.
Does the Iress share price reflect the offer?
At the time of writing the share price is up over 4% at $14.99.
The offer price of $15.75 is 5% higher than the current Iress share price of $14.99. If taking the interim dividend into account, with the implied value of $15.91 per share (before franking credits) it is over 6% higher than the current share price.
