LiveHire Ltd Responds to Humanforce's Takeover Bid with Fourth Supplementary Statement
LVH (LVH) Share Update September 2024 Monday 16th
LiveHire Ltd Releases Fourth Supplementary Target’s Statement Amid Takeover Bid
LiveHire Ltd (ASX: LVH) has released its fourth supplementary target’s statement in response to the ongoing takeover bid by Humanforce Holdings Pty Ltd. The statement, dated 16 September 2024, provides crucial updates for shareholders amid the bid.
Instant Summary:
- LiveHire releases its FY24 Annual Report.
- LiveHire requires external funding to continue as a going concern.
- LiveHire Directors unanimously recommend accepting Humanforce's offer.
- The offer price is $0.045 cash per LiveHire share.
- LiveHire Directors have sold their shares to Humanforce.
- Humanforce's offer is the only current offer to acquire all LiveHire shares.
Annual Report and Financial Stability
LiveHire Ltd has published its FY24 Annual Report, which is available on the company's website. The report reiterates the company's need for external funding to continue as a going concern. This funding could come in the form of equity, which may dilute current shareholders, or debt, which could impose restrictive covenants and high interest rates.
If Humanforce does not acquire 100% of LiveHire and new funding sources are not secured, LiveHire may struggle to continue operations. This critical point underscores the importance of the ongoing takeover bid.
Recommendation to Shareholders
The LiveHire Directors continue to unanimously recommend that shareholders accept Humanforce's offer of $0.045 per share. The offer represents a compelling premium to the trading prices of LiveHire shares prior to the announcement. The offer is unconditional and provides certain cash consideration on a T+2 basis, offering liquidity to shareholders.
Moreover, no superior proposal has emerged, and it is unlikely that one will. By not accepting the offer, shareholders risk becoming minority holders in an entity controlled by Humanforce.
Directors' Actions
All LiveHire Directors have sold their shares to Humanforce, totaling approximately 11.74% of the company's shares. They have also indicated their intention to accept the offer for any shares acquired through the exercise of vested performance or service rights during the bid period.
Offer Details
Humanforce's offer is the only current bid to acquire all LiveHire shares. Shareholders can accept the offer until the end of the offer period on 30 September 2024, unless extended. If the market price exceeds the offer price, shareholders may choose to sell their shares on the market if there are sufficient bids available.
LiveHire encourages shareholders to read the fourth supplementary target’s statement and prior statements for detailed information and to accept the offer.
The release of the fourth supplementary target’s statement and the recommendation to accept Humanforce's offer could stabilize LiveHire's stock price in the short term. However, the company's need for external funding and the potential dilution of shares or restrictive debt covenants could negatively impact investor sentiment. The offer price of $0.045 per share provides a liquidity opportunity, but the long-term outlook remains uncertain if the takeover is not completed.
Investor Reaction:
Analysts are likely to view the recommendation to accept the offer positively, given the premium offered and the liquidity it provides. However, concerns about LiveHire's ability to continue as a going concern without the takeover may weigh on investor sentiment. The unanimous recommendation by the Directors and their actions to sell their shares to Humanforce could be seen as a strong endorsement of the offer.
Conclusion:
Investors should carefully consider the information provided in the fourth supplementary target’s statement and the potential implications for LiveHire's future. Accepting Humanforce's offer may provide a timely exit and liquidity, but the long-term prospects of LiveHire without the takeover remain uncertain. Shareholders are encouraged to consult with their financial advisors to make an informed decision.