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Highlights:
- PropTech will be acquired by technology property company MRI via a scheme of arrangement.
- The scheme consideration is AU$0.60 cash per PropTech share.
- The transaction is expected to be completed by February 2023.
The share price of Australian small-cap company PropTech Group Limited (ASX:PTG) surged by 111% on ASX today (1 November 2022) after it made an announcement regarding its acquisition by a wholly owned subsidiary of MRI Software.
SaaS products provider PropTech shared that the subsidiary company of MRI will acquire it under the scheme implementation deed signed amongst the parties.
At 12:28 PM AEDT, PropTech Group’s shares were spotted trading 111.11% higher at AU$0.57 apiece with a market capitalisation of AU$40.72 million. Including today’s gain, the shares have recorded a gain of 58.33% in the past six months and a fall of 8.06% in the last 12 months. On a year-to-date basis, it has increased by 18.75%.
Details of the acquisition
PropTech informed the market that MRI would acquire 100% shares of the company under the scheme of arrangement for consideration of AU$0.60 cash per share. This equates to an implied equity value of around AU$93.4 million on a fully diluted basis.
The scheme consideration represents a 131% premium on the closing price of AU$0.26 per share as of 28 October 2022.
According to the MRI’s official release, the offer includes acquiring PropTech’s software brands like RentFind Inspector, Designly, Website Blue, Real estate Investar, EagleCRM, VaultEA and VaultRE.
What’s next?
The board of PropTech unanimously recommends its shareholders to vote in favour of the scheme. The board has made such a recommendation after considering the factors like significant premium and certainty of value.
Certainty of value means that the 100% cash consideration allows shareholders to fully realise the investment in exchange for cash.
PropTech shared that after receiving court approval and ASIC registration, the scheme booklet is expected by December 2022. After the satisfaction of other conditions, it is expected that shareholder voting will take place in January 2023, and transactions will be implemented by February 2023.
