Woolworths has offered to buy an 80% controlling stake in the online business MyDeal for $271 million, or $1.05 a share cash.
MyDeal is an online department store like business (a bit like Woolies Big W).
In a statement to the ASX Friday morning Woolies said it was proposing to offer $1.05 a share for 80% of the company.
MyDeal shares closed at 64.5 cents Thursday night on the ASX. That valued it at $167 million.
That means the $1.05 a share is a 62% premium to the last sale.
Woolworths said it proposes to acquire all of the issued shares in the Company other than certain shares held by “Sean Senvirtne and other key management personnel.”
In a statement of its own, MyDeal said it had entered into a binding Scheme Implementation Agreement with Woolworths Group Limited “under which it is proposed that Woolworths Group will acquire a controlling interest in MyDeal, and MyDeal will be de-listed from the ASX.”
“Sean Senvirtne (CEO and founder of MyDeal) and certain other Key Management Personnel will retain a significant minority shareholding in MyDeal and will continue to lead the business.
“MyDeal’s Board unanimously recommends that MyDeal shareholders vote in favour of the Transaction in the absence of a superior proposal and subject to the Independent Expert concluding that the Scheme is in the best interests of MyDeal shareholders.
Sean Senvirtne said he has granted a conditional call option over 19.9% of his shares to Woolworths Group.
MyDeal says the offer is subject to customary conditions, including ACCC approval of the acquisition and Court and shareholder approvals of the Transaction. The Transaction does not include any funding nor due diligence conditions.
MyDeal floated on the ASX on October 22, 2020 at $1 a share, so the offer from Woolies is a hardly stunning 4% premium to the issue price. The ASX 200 is up more than 14% in the same time so MyDeal has not set the world on fire. The shares hit a high shortly after listing of $1.71. They last hit the $1 level back in March, 2021.
