Quickstep Holdings to Be Acquired by ASDAM in AU$0.575 Per Share Deal

December 20, 2024 02:12 PM AEDT | By Team Kalkine Media

Quickstep Holdings to Be Acquired by ASDAM in AU$0.575 Per Share Deal — Image source: Shutterstock

Generous Scheme Consideration

The offer price of AU$0.575 per share delivers:

195% premium to Quickstep’s closing share price of AU$0.195 as of November 6, 2024.
123% premium to the 1-month volume-weighted average price (VWAP) of AU$0.258.
109% premium to the 3-month VWAP of AU$0.275.

These figures reflect the strong value proposition for Quickstep shareholders and highlight the strategic significance of the company to ASDAM.

Board and Expert Recommendations

Quickstep’s Board of Directors has unanimously recommended the Scheme, in the absence of a superior proposal and subject to an Independent Expert determining that the deal is in the best interests of shareholders. The deal’s approval hinges on several conditions, including:

Quickstep shareholder and court approvals.
No material adverse changes to Quickstep's operations.
Compliance with exclusivity provisions, including “no shop,” “no talk,” and “no due diligence” restrictions.

Provisions and Break Fees

The SID includes standard exclusivity provisions to ensure smooth transaction execution. Notably, Quickstep must notify ASDAM of competing proposals and offer ASDAM a "matching right." Additionally, the SID obligates Quickstep to pay a break fee in certain circumstances, ensuring both parties are committed to the transaction.

Market Reaction and Outlook

Quickstep shares jumped 40% to 55.5 cents as of December 20, 2024, reflecting investor confidence in the Proposed Transaction.

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