Commander's proposed takeover of Volante has moved a step closer after the board of the ICT services provider advised shareholders to accept an updated share offer and bonus cash dividend.
Volante shareholders will receive up to $1.19 per share if they elect to sell - a combination of an offer of $1.05 per share, fully franked dividend of $0.10 from Volante and franking credits of up to $0.043. The revised offer values Volante at $147.7 million.
Commander reserves the right to terminate the deal if it doesn't receive at least 90 per cent of Volante's stock in the takeover. Currently it boasts around 94,281 shares - approximately 0.07 per cent. The offer will close on March 31.
A Volante spokesperson said the board had decided the offer was in the best interests of shareholders as it came in above the market rate for Volante stock (currently around $1.10) and was only six per cent below the lowest share estimate of $1.27 based on projected 2007 results.
It is the second time Commander has extended its offer period for Volante, but the first time it has increased the value.
"It is in the best interests of Volante and its shareholders that this transaction is concluded as promptly and efficiently as possible," Volante managing director, Ian Penman, said in a statement to the ASX. "Our common objective now is to complete the transaction as soon as possible."