Supreme Court Gives Green Light to TASK Group's Acquisition by PAR Technology
TASK GROUP HOLDINGS LIMITED (TSK) Share Update July 2024 Tuesday 9th
Supreme Court Approves TASK Group's Acquisition by PAR Technology
In a significant development for TASK Group Holdings Limited (ASX: TSK), the Supreme Court of New South Wales has approved the Scheme of Arrangement under which PAR Technology Corporation, through its subsidiary PAR Global Australia Pty Ltd, will acquire 100% of TASK's issued shares.
Instant Summary:
- Supreme Court of New South Wales approves Scheme of Arrangement.
- PAR Technology Corporation to acquire 100% of TASK shares.
- TASK shares to be suspended from trading on the ASX from 10 July 2024.
- Scheme becomes effective upon lodging Court's orders with ASIC on 10 July 2024.
- TASK shareholders to receive Scheme Consideration on 19 July 2024.
Approval and Next Steps
The Supreme Court of New South Wales has officially approved the Scheme of Arrangement that allows PAR Technology Corporation to acquire TASK Group Holdings Limited. This decision marks a significant milestone in the acquisition process, which began with the announcement of the Scheme Booklet on 28 May 2024.
According to the announcement, TASK expects to lodge a copy of the Court's orders with the Australian Securities and Investments Commission (ASIC) on 10 July 2024. Once lodged, the Scheme will become legally effective, and TASK shares will be suspended from trading on the ASX from the close of trading on the same day.
Key Dates and Timetable
The timetable for the remaining key milestones related to the Scheme is as follows:
- 10 July 2024: Court order is lodged with ASIC and Scheme becomes effective.
- 10 July 2024: Suspension of TASK shares from trading on the ASX at the close of trading.
- 12 July 2024: Scheme Record Date at 7:00 PM Sydney time.
- 19 July 2024: Implementation Date and payment of the Scheme Consideration to TASK shareholders.
- 20 July 2024: New PAR shares start trading on the NYSE (New York time).
Shareholder Consideration
Upon the Scheme becoming effective, TASK shareholders will receive the Scheme Consideration in accordance with their election, if a valid election was made, for each TASK share they hold on the Scheme Record Date. This is set to occur on 19 July 2024, providing shareholders with the agreed compensation as part of the acquisition deal.
Further Information
For any questions regarding the Scheme, shareholders are encouraged to contact the Shareholder Information Line available Monday to Friday between 8:30 AM and 5:00 PM Sydney time. The contact numbers are as follows: 1300 855 080 (within Australia), 0800 292 980 (within New Zealand), or +61 3 9415 4000 (outside Australia and New Zealand).
The approval of the Scheme is likely to have a positive impact on TASK Group's stock in the short term, as it provides a clear path forward for the acquisition by PAR Technology. The suspension of TASK shares from trading on the ASX and the subsequent trading of new PAR shares on the NYSE will also be key events to watch. Investors may see this as a strategic move that could enhance the value of their holdings through the integration with PAR Technology's global operations.
Investor Reaction:
Initial reactions from investors and analysts have been positive, with many viewing the acquisition as a strategic fit that could drive future growth for both companies. 'This acquisition positions TASK Group for greater market reach and operational efficiency,' said one analyst. Investors are also optimistic about the potential for enhanced shareholder value through the combined strengths of TASK and PAR Technology.
Conclusion:
With the Supreme Court's approval, TASK Group's acquisition by PAR Technology is set to proceed, marking a significant milestone for both companies. Investors should keep an eye on the upcoming key dates and consider the potential long-term benefits of this strategic acquisition. As always, staying informed and making well-considered decisions will be crucial for maximizing investment returns.