Quickstep jumps post contracts update and takeover offer

Quickstep Holdings (ASX:QHL) has had a busy day, announcing (1) the successful finalisation of key negotiations with its Tier 1 defence customers, incorporating terms that reflect mutually acceptable volumes and pricing adjustments and (2) a takeover offer from ASDAM Operations Pty Limited.

• Contracts update

• C-130 Program with Lockheed Martin: Quickstep Holdings secures volume and increased pricing for the C-130 program post-MYIII contract, covering deliveries from February 2025 to December 2029 with pricing adjustments effective from February 2025
• F-35 Vertical Tail Program with Marand: Quickstep Holdings concludes agreements for vertical tail component production. The contract spans production from September 2024 to June 2026, with pricing adjustments effective from September 2024
• F-35 Program with Northrop Grumman: Quickstep Holdings receives Lot 19 definitised purchase order firming the demand for FY26 to FY27 H1 component production
• Quickstep Holdings also remains in active discussions with Northrop Grumman regarding further pricing adjustments for the new orders, ensuring alignment with current economic conditions.

• Takeover offer

• ASDAM Operations Pty Limited intends to make an off-market takeover bid for Quickstep Holdings at a cash price of A$0.40 per share
• The latter price is 105% above the closing price of $0.195 at the end of trading on 6 November 2024
• The Offer is subject to only three conditions, one being a minimum 90% acceptance by Quickstep shareholders
• ASDAM had previously submitted an offer to Quickstep to acquire 100% of the Company by way of a scheme of arrangement, and was still open to transacting via Scheme

Rohan Stocker, ASDAM CEO, said: “As one of Quickstep’s largest customers, through Marand, ASDAM wants to work constructively with the Quickstep Board to conclude a value-creating deal for shareholders”.