QANTM Declines To Make A Counter-Proposal To Acquire Xenith Before The Deadline

  • Apr 11, 2019 AEST
  • Team Kalkine
QANTM Declines To Make A Counter-Proposal To Acquire Xenith Before The Deadline

QANTM Intellectual Property Limited (ASX: QIP) owns a number of intellectual property (IP) businesses in many countries across the world like Singapore, Australia, New Zealand, etc. The company has 150 highly qualified professionals working under the three brands namely; Davies Collison Cave, FPA Patent Attorneys, and Advanz Fidelis IP Sdn Bhd. With over 270 years of combined history, the company has a good track record in providing IP services to both local and international clients. It has some of the prestigious clients like Fortune 500 companies, start-up technology businesses public research institutions and universities, etc.

On 11th April 2019, the company announced that it has been made aware of an announcement on 8th April 2019 by Xenith IP Group Ltd and IPH Ltd with respect to IPH’s revised proposal to acquire 100% stake of Xenith through a scheme of arrangement. The company stated that it had been reached by Xenith to provide a counter-proposal to match the terms of IPH’s revised proposal till the deadline of 5:00 PM on Thursday 11th April 2019. In reply to this, the company has notified Xenith that it will not be making any revised proposal prior to that deadline.

On 8th April 2019, Xenith had confirmed that after further discussions with IPH, it had received a revised proposal from IPH under which IPH would acquire 100% of Xenith via a scheme of arrangement. This updated proposal by IPH was comprised of a competing proposal as defined in the scheme implementation deed between Xenith and QANTM, dated 26th November 2018. On the basis of this deed, Xenith had given QANTM 3 business days (up to 5:00 PM on Thursday 11th April 2019) to place a revised proposal to match the terms of the Updated IPH’s Proposal.

The revised proposal by IPH proposed the purchase for a mix of cash and IPH shares valued at $2.15 per Xenith share. Under this new proposal, the shareholders of Xenith will receive ‘Standard Consideration’ of $1.28 cash and 0.1261 IPH shares for every Xenith share, representing a total value of $2.15 per Xenith share based on IPH’s closing price on 5th April 2019 of $6.90 per share. This valued the remaining shares of Xenith at approximately $154 million.

However, the proposal has not been signed by any of the parties yet because under the proposed scheme implementation deed QANTM must be notified about the revised bid and must be given three business days to revise its proposal and match its right. After the expiration of this period, IPH and Xenith will be in a position to agree and sign the proposal.

On 22nd February 2019, QANTM released its 1HFY19 results wherein it reported a decent 12% growth in the total revenue

QANTM company has a market cap of A$174.3 million. On the technical front, the stock price increased by 0.76% on ASX and closed at the highest price of the day, A$1.32 as of 11th April 2019. In the last six months, the stock has remained subdued and increased by only 0.7% while the YTD return stands at negative 6%.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK