Prospa Group's Acquisition by Salkbridge Pty Ltd Becomes Legally Effective
PROSPA GROUP LIMITED. (PGL) Share Update July 2024 Wednesday 31st
Prospa Group Announces Court Approval for Acquisition by Salkbridge Pty Ltd
Prospa Group Limited (ASX: PGL) has announced that the Supreme Court of NSW has approved the scheme of arrangement for its acquisition by Salkbridge Pty Ltd, making the scheme legally effective.
Instant Summary:
- Court approval for Prospa's acquisition by Salkbridge Pty Ltd.
- Scheme becomes legally effective.
- Prospa Shares to be suspended from ASX trading.
- Scheme Consideration to be provided on 8 August 2024.
Legal Approval and Next Steps
The Supreme Court of NSW has granted approval for the scheme of arrangement under which Salkbridge Pty Ltd, controlled by the Salter Brothers Tech Fund, will acquire all issued shares of Prospa Group Limited that are not already owned by the Consortium.
An office copy of the court orders has been lodged with the Australian Securities and Investments Commission (ASIC), making the scheme legally effective. As a result, the quotation of Prospa Shares on the ASX will be suspended from the close of trading today.
Timeline for Implementation
Prospa Shareholders will receive the Scheme Consideration on the Implementation Date, which is scheduled for Thursday, 8 August 2024. Shareholders must hold Prospa Shares by 7:00 PM (Sydney time) on Monday, 5 August 2024, to be eligible for the Scheme Consideration.
Company Background
Prospa Group Limited is a leading fintech company committed to supporting small businesses in Australia and New Zealand through innovative financial management products and services. Since its inception in 2012, Prospa has provided over $4.0 billion in funding to small businesses and collaborates with more than 16,000 brokers, accountants, and aggregator partners.
Prospa is recognized as a Great Place To Work in Australia and a WORK180 Endorsed Employer for Women, reflecting its commitment to its employees, communities, and the environment.
The court's approval of the scheme is a significant milestone for Prospa Group and its shareholders. The acquisition by Salkbridge Pty Ltd is expected to bring strategic benefits and potentially enhance Prospa's market position. The suspension of Prospa Shares from ASX trading may lead to short-term volatility, but the long-term outlook appears positive as the company integrates with the Salter Brothers Tech Fund.
Investor Reaction:
Analysts are likely to view the court's approval positively, as it provides clarity and certainty regarding the acquisition. The strategic benefits of the acquisition could be seen as a positive development for Prospa's future growth. However, investors should remain cautious and monitor the integration process closely.
Conclusion:
Investors should take note of the key dates related to the scheme's implementation and consider the potential long-term benefits of the acquisition. Staying informed about Prospa's strategic developments and market position will be crucial in making informed investment decisions.