Set to join Australia’s fastest growing provider of share registry services, Advanced Share Registry (ASX: ASW) has received an offer to be wholly acquired by Automic Group at a 32% premium on their last traded share price.
Automic, already the biggest disruption in the traditional share registry sector, has made big strides in the financial services industry in recent years firstly from its share registry technology which has then been bolstered by complementary acquisitions.
The bid for competitor Advanced Share Registry comes in the form of a Scheme Implementation Deed, with Automic acquiring 100% of ASW shares for a cash consideration of $0.165 per share, valuing Advanced Share Registry at $31.9 million.
The offer price represents a 32.0% premium to the closing share price of $0.125 on 7 September 2023; or 26.9% to the 30-day VWAP to 7 September 2023 of $0.131 per share.
Additionally, Advanced Share Registry may declare and pay shareholders a fully franked dividend of up to a maximum of $0.0025 per share, subject to the availability of franking credits. ASW’s Board has unanimously recommended the scheme, and they intend to vote in favour of the 58.83% of issued capital they hold or control.
ASW Chairman, Simon Cato, expressed optimism about the acquisition, stating, “Automic represents a logical, long-term owner for the Advanced Share Registry business, with the expertise, capacity, and technology platform to support continued growth for our business. Automic’s offer provides certainty for our shareholders at an attractive premium.”
This bid comes after several other acquisitions by Automic in recent years to expand its presence in the financial services industry.
An Independent Expert will assess the scheme’s best interests for ASW shareholders, with the report included in a Scheme Booklet expected to be distributed to shareholders in October 2023. The scheme is subject to regulatory approval, with a shareholder meeting likely to be held in November 2023, and implementation expected in December 2023.
Automic’s latest move to acquire Advanced Share Registry underscores its commitment to providing cutting-edge share registry services and its ambition to be the leader in the industry. As the financial services landscape continues to evolve, Automic’s strategic acquisitions position it as a formidable player with a robust and comprehensive suite of services to cater to the diverse needs of its clients.
For the Full Year ended 30 June 2023, Advanced Share Registry reported $5.5 million revenue and $2.2 million in profit before tax with fully audited financials still be be released in September 2023.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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