Infomedia (ASX:IFM) shares grabbed investors’ attention today, here’s why

3 min read | May 27, 2022 06:38 PM AEST | By Priyanka Payal

Infomedia (ASX:IFM) shares grabbed investors’ attention today, here’s why — Image source: © Joggi2002 | Megapixl.com

Highlights

Infomedia Limited shares closed 6.501% higher today after the company revealed that it has received a further conditional non-binding indicative proposal from Battery Ventures.

The proposal involves the offer price of AU$1.75 per Infomedia share, payable in cash.

The company had announced on 13 May that it had received its first takeover offer from TA Associates.

The shares of ASX-listed technology company Infomedia Limited (ASX:IFM) closed 6.501% higher at AU$$1.720 on ASX after the company announced that it has received a further conditional non-binding indicative proposal from Battery Ventures. The proposal involves the offer price of AU$1.75 per Infomedia share payable in cash.

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Earlier, in an announcement dated 13 May, the company had reported its first takeover offer from TA Associates at an offer price of AU$1.70 per Infomedia share. Earlier, TA Associates Management had obtained a 14.5% interest in Infomedia shares via an agreement entered into with Infomedia shareholder Viburnum Funds Pty Ltd (“Viburnum”).

Battery Ventures is a US-based, global technology-focused investment company.

Another important factor that has likely pushed the stock’s share price higher today is the overall performance of the technology sector. Today, the Australian share market closed 1.08% higher at 7,182.70 points. A total of 10 out of 11 sectors traded higher on the last trading day of this week. The S&P/ASX 200 Information Technology (Sector) XIJ closed 1.173% higher at 1466.100 points.

Image Source: © A1stock | Megapixl.com

Details of Battery Ventures proposal:

Battery Ventures has indicated that the proposal is not subject to any financing contingencies, and the company intends to finance the transaction from committed capital within its existing investment funds.

As per today’s announcement, the Indicative Proposal is subject to certain conditions; including

Entry into an exclusivity agreement;
Completion of due diligence;
Approval of the proposal by the Infomedia Board, and
Entry into a satisfactory scheme implementation deed with conditions including (but not limited to):

Customary deal protections;
Receipt of required regulatory & court approvals, including FIRB approval.
Infomedia shareholder approval;
No material adverse changes;
No prescribed occurrences or regulated events; and
Receipt of third-party consents.

Infomedia Limited is an ASX-listed company which supplies information solutions to the parts and service sector of the automotive industry. The company has a market capitalisation of AU$606.85 million.

In the last one year, Infomedia Limited shares have gained 24.64%, while the stock is up 12.42% year-to-date (YTD).

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