A Scheme Meeting has been set in place in for itX shareholders to cast their vote on the acquisition proposal by Avnet Technology Solutions.
On August 13 Avnet announced its intentions to acquire itX in an all cash merger, valued at $77.5 million. The acquisition will see Avnet effectively double its presence in Australia. If it all goes to plan, Avnet country manager, Gavin Lawless, hopes to complete the process by January.
The Scheme Meeting was ordered by the Federal Court of Australia on October 20 and is scheduled for November 29 in Sydney.
In a statement to the ASX, it stated itX shareholders will receive $1.55 in cash for each itX share they hold on the scheme record date. The distributor has also reserved the right to declare and pay shareholders a special dividend, which is subject to certain conditions, of up to $0.20 per share, in addition to its normal full year dividend.
An independent expert’s report conducted by WHK Howarth Corporate Finance, has considered the Scheme and concluded it is fair, reasonable and in the best interest of shareholders.
itX directors unanimously recommend that shareholders vote in favour of the Scheme and Scheme meeting, in the absence of a superior offer and that it is still in the best interests of itX shareholders.
The distributor’s directors intend to vote in favour of scheme in respect of all the itX shares they own or control on this basis.
At the time of publication, itX was trading at $1.52