Bigtincan Provides Update on Investcorp Transaction Proposal
BTH (BTH) Share Update November 2024 Monday 18th
Bigtincan Updates on Investcorp Proposal Amid Uncertainty
Bigtincan Holdings Limited has received an update from Investcorp AI Acquisition Corp. regarding the proposed transaction under a scheme implementation deed, with no changes to the initial consideration.
Instant Summary:
- Investcorp proposes a cash election facility of at least USD$15 million.
- No change in the proposed consideration for the IAAC Transaction.
- Updated implied pre-money equity valuation of A$0.50 per share.
- Scheme shareholders can receive cash consideration of A$0.25 per share.
- Potential changes to cash election facility satisfaction conditions.
Transaction Details
On 19 November 2024, Bigtincan Holdings Limited received a letter from Investcorp AI Acquisition Corp. regarding the proposed transaction announced on 21 October 2024. The transaction is intended to be implemented under a scheme implementation deed (SID) and business combination agreement.
The letter indicates that a cash election facility of at least USD$15 million is anticipated, although it remains uncertain if it will be activated. The consideration proposed under the IAAC Transaction remains unchanged, but the letter provides updated consideration conversions based on the AUD/USD exchange rate as of 18 November 2024.
Valuation and Consideration
The implied pre-money equity valuation of Bigtincan is approximately A$0.50 per share, an increase from A$0.48 at the time of signing the SID. Scheme shareholders opting for cash consideration will receive approximately A$0.25 per share, up from A$0.241.
Under the SID, the first 5,000 shares of Bigtincan shareholders on the register as of 21 October 2024 would be satisfied first under any cash election facility. The letter proposes altering this to the first 10,000 shares on the register as of 23 November 2024, subject to scale back.
Next Steps
If the cash election facility is activated, Bigtincan will make an announcement confirming the details and seek to agree on the proposed amendments to the SID. Shareholders are advised that no immediate action is required from them at this stage.
The proposed transaction and potential activation of the cash election facility could influence Bigtincan's stock price. The increase in share valuation may be viewed positively by investors, though the uncertainty surrounding the cash election facility might temper enthusiasm. Market reactions will likely hinge on further updates and confirmations from Bigtincan.
Investor Reaction:
Analysts are likely to adopt a cautious stance given the uncertainty around the cash election facility. While the increase in valuation is a positive sign, investors may remain wary until further details are confirmed.
Conclusion:
Investors should stay updated on any announcements regarding the cash election facility and potential amendments to the SID. Bigtincan's ability to finalize these details will be crucial in maintaining investor confidence and potentially boosting stock performance.