Dimension Data Australia has put forward a proposal to acquire Oakton for about $171 million at $1.90 cash per share via a Scheme Implementation Deed (SID).
Oakton’s board of directors has agreed with the motion, claiming the proposal is in the best interest of the consultancy’s shareholders, and is therefore unanimously recommending that shareholders vote in favour of the move.
Oakton’s founding chairman, Paul Holyoake, and CEO, Neil Wilson, representing 11.3 per cent of the total shares outstanding, intend to vote in favour of the scheme.
The value of the proposal represents a premium of 29.7 per cent to last close on August 11, 35.5 per cent to one-month volume-weighted average price (VWAP), and 42.6 per cent to three-month VWAP.
According to a statement to the ASX, shareholders registered on the record date may be paid a fully-franked dividend of up to $0.04 per share for fiscal 2014 without it reducing the $1.90 cash consideration.
“Through its continued transformation, Oakton has become a leading Australian services integration company,” Holyoake, said. “The investments we have made in our operation in India, solution development and service integration partnerships have created a unique platform that is increasingly well-aligned with our customers’ requirements. This has been recognised by our strategic partners at Dimension Data.”
He claims that while the board maintains a positive outlook for Oakton as an independent company, its priority is to maximise shareholder value.
Dimension Data’s proposal is subject to Oakton shareholder go-ahead and the approval of the Supreme Court of Victoria.
The Oakton board expects to provide shareholders with an explanatory booklet during October, with the scheme meeting scheduled for November.