Diligent confirms US takeover offer, shares jump 26%
[WELLINGTON] New Zealand software company Diligent Corp Monday confirmed a US investment firm has offered around NZ$941 million (S$868.4 million) for the company.
Under the terms of the agreement Diligent shareholders will receive US$4.90 in cash per share from Insight Venture Partners. The offer represents a 31 per cent premium to Friday's closing price, Diligent said in a statement to the New Zealand stock exchange.
The stock jumped 26 per cent on the news.
Diligent's board has unanimously approved the transaction and agreed to recommend that shareholders vote in favor of the deal.
The transaction is subject to shareholder and regulatory approval.
The holders of Diligent's preference shares, including Spring Street Partners LP, Diligent's largest shareholder, have entered into voting agreements in support of the transaction.
A special meeting of Diligent's shareholders will be scheduled as soon as possible, the company said.
The transaction is expected to close in the second quarter of 2016. Diligent will be a privately held company upon closing.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Sheng Siong Q1 net profit up 9.3% on higher revenue
Nestle sales growth sputters on US slump, vitamin snags
Hermes Q1 sales jump 17% on strong China demand
Cordlife’s independent auditor to retire after issuing disclaimer of opinion on FY2023 financials
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO
Cordlife customers push for legal action