Pacific Smiles Co-Founder Backs NDC BidCo Acquisition Scheme
PSQ (PSQ) Share Update July 2024 Wednesday 24th
Pacific Smiles Co-Founder Supports NDC Scheme
Pacific Smiles Group Limited (ASX: PSQ) has announced that Dr. Alison Hughes, co-founder and significant shareholder, intends to vote her shares in favor of the proposed acquisition by NDC BidCo Pty Ltd.
Instant Summary:
- Dr. Alison Hughes to vote approximately 9.90% of Pacific Smiles shares in favor of the Scheme.
- NDC BidCo Pty Ltd proposes to acquire 100% of Pacific Smiles shares.
- Cash consideration of $1.91 per share, subject to conditions.
- Pacific Smiles Directors strongly encourage shareholders to vote.
Announcement Details
On July 25, 2024, Pacific Smiles Group Limited (ASX: PSQ) announced that Dr. Alison Hughes, co-founder of the company and holder of approximately 9.90% of its shares, has expressed her intention to vote in favor of the Scheme Resolution proposed by NDC BidCo Pty Ltd (NDC). This Scheme involves NDC acquiring 100% of the shares in Pacific Smiles for a cash consideration of $1.91 per share, subject to certain conditions.
Dr. Hughes' support is a significant endorsement for the Scheme, given her substantial shareholding and her role as a co-founder. The Pacific Smiles Board has also urged other shareholders to vote, emphasizing the importance of their participation in determining the outcome of the Scheme.
Scheme Implementation Deed
Pacific Smiles has entered into a Scheme Implementation Deed with NDC, which outlines the terms and conditions of the proposed acquisition. The cash consideration of $1.91 per share is subject to adjustments, including the deduction of any Permitted Dividend and the addition of any Ticking Fee that may accrue.
Shareholders are encouraged to refer to the Scheme Booklet, released to the ASX on June 26, 2024, for detailed information on the Scheme and instructions on how to vote. The Scheme Booklet is available on the Pacific Smiles investor relations website.
The announcement that Dr. Alison Hughes will vote her shares in favor of the Scheme is likely to positively influence investor sentiment. Her support suggests confidence in the proposed acquisition and could lead to increased shareholder approval. The cash consideration of $1.91 per share represents a premium, which may also drive positive market reactions.
Investor Reaction:
Initial reactions from investors and analysts have been positive, with many viewing Dr. Hughes' support as a strong endorsement of the Scheme. Some analysts have noted that the cash consideration offers a fair value for the shares, considering current market conditions.
Conclusion:
Investors should closely monitor the progress of the Scheme and participate in the voting process. The support from a key shareholder like Dr. Alison Hughes adds significant weight to the proposed acquisition. Shareholders are encouraged to review the Scheme Booklet and make an informed decision.