Sealink Travel Group Ltd’s [ASX: SLK] share price has increased by over 10% since opening this morning.
The company’s shares are currently trading at $4.20, up from $3.81 yesterday.
The Australian-based company provides services in both the transport and tourism industry. Their services include moving regular commuters and freight between destinations, as well as promoting and packaging holidays and providing tours.
Why has Sealink’s share price increased?
The increase in share price came after an announcement this morning responding to a report in the Australian Financial Review, confirming that there was no change in ownership in the company.
The update confirmed that Sealink had received ‘an unsolicited, confidential, indicative and non-binding proposal from a party expressing interest in a transaction which would result in a change of control of SeaLink’.
The offer was for 100% of shares within the company for cash consideration of $4.75 per share.
However, after careful consideration, the board rejected the offer, concluding that the proposal undervalued the diverse tourism and travel company.
The board recommended that shareholders take no action in response to the takeover offer.
What’s next for Sealink?
Sealink have acknowledged they understand their continuous disclosure obligations within the ASX guidelines and will be in full compliance.
Due to the misunderstanding, Sealink have announced that they retained Macquarie Capital as a financial adviser and Kain Lawyers as legal advisor for the company.
Despite the ordeal, the company believe they are well positioned to continue delivering strong growth.
For Money Morning
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