K2fly Limited's Acquisition by Argyle Bidco Pty Ltd Receives Court Approval
K2F (K2F) Share Update September 2024 Monday 16th
K2fly's Acquisition by Argyle Bidco Pty Ltd Approved by Court
In a significant development for K2fly Limited (ASX: K2F), the Supreme Court of Western Australia has approved the scheme of arrangement for the acquisition of K2fly by Argyle Bidco Pty Ltd, a company ultimately controlled by Accel-KKR Capital Partners VII, LP.
Instant Summary:
- Supreme Court of Western Australia approves the scheme of arrangement.
- K2fly to lodge Court's orders with the Australian Securities and Investments Commission on 17 September 2024.
- K2fly shares to be suspended from trading on ASX from the close of trading on 17 September 2024.
- K2fly shareholders to receive $0.19 per share on 27 September 2024.
- K2fly to be delisted from ASX on 30 September 2024.
Approval and Next Steps
The Supreme Court of Western Australia has given its nod to the scheme of arrangement under Part 5.1 of the Corporations Act 2001, which allows Argyle Bidco Pty Ltd to acquire 100% of K2fly shares. This approval marks a crucial step in the acquisition process.
K2fly plans to lodge a copy of the Court's orders with the Australian Securities and Investments Commission (ASIC) on Tuesday, 17 September 2024. Once lodged, the scheme will become legally effective. Consequently, K2fly will request the suspension of its shares from trading on the ASX, effective from the close of trading on the same day.
Timetable and Key Dates
The indicative timetable for the remaining steps in the acquisition process is as follows:
- Effective Date of the Scheme and Last Day of Trading of K2fly Shares on ASX: Tuesday, 17 September 2024
- Suspension of trading of K2fly Shares on ASX: Close of trading on 17 September 2024
- Record Date: 5:00pm (AWST) Thursday, 19 September 2024
- Implementation Date: Friday, 27 September 2024, when K2fly shareholders will receive $0.19 per share
- Delisting of K2fly from ASX: Monday, 30 September 2024
All stated dates and times are indicative and subject to change based on various factors outside the control of K2fly and Bidco. Any changes to the timetable will be announced on the ASX and available under K2fly's profile at www.asx.com.au.
Shareholder Information
K2fly has committed to keeping its shareholders informed about any material developments related to the scheme as the timetable progresses. Shareholders with questions or requiring further information can contact the K2fly shareholder Information Line at 1300 103 392 (within Australia) or +61 2 9068 1925 (outside Australia) from Monday to Friday between 8.30am and 7.00pm (Sydney time).
The court's approval of the scheme of arrangement is a significant milestone for K2fly and its shareholders. The acquisition by Argyle Bidco Pty Ltd, backed by Accel-KKR Capital Partners VII, LP, is expected to bring substantial financial benefits to K2fly shareholders, who will receive $0.19 per share. The suspension of trading and subsequent delisting from the ASX will mark the end of K2fly's journey as a publicly traded company.
Investor Reaction:
Analysts are likely to view the court's approval positively, as it provides a clear path forward for the acquisition. The agreed-upon share price of $0.19 represents a fair valuation, and the backing by Accel-KKR Capital Partners VII, LP adds credibility to the deal. However, some investors may have concerns about the future prospects of K2fly under new ownership and the potential changes in strategic direction.
Conclusion:
Investors should stay updated on the final steps of the acquisition process and consider the potential long-term impacts on their portfolios. The approval of the scheme of arrangement is a pivotal moment for K2fly, and the upcoming changes will be crucial in shaping the company's future. Stay informed and make well-considered investment decisions as the situation develops.