Hansen Technologies Receives Takeover Bid, Shares 22% Up (ASX:HSN)

Altium isn’t the only tech stock receiving takeover bids today!

Hansen Technologies Ltd [ASX:HSN] share price is currently trading shares 21.81% higher at the time of writing. Soaring on the back of a new cash offer from BGH capital.

And while it is certainly far less than the $5 billion bid Altium received, the $1.3 billion price tag for Hansen is noteworthy. Especially for shareholders who are looking likely to receive a very generous payout.

Let’s dig into the details…

25% premium on an all-cash deal

So, first and foremost, this isn’t a done deal just yet.

Hansen’s management has simply agreed to a conditional bid. Giving BGH an exclusive period to undertake due diligence by taking a closer look at Hansen’s books.

A six-week process that will then determine whether both parties will agree to further takeover talks.

As it stands, though, BGH is currently proposing a $6.50 per share offer to acquire 100% of the shares in Hansen. A 25% premium from the previous closing price of $5.18 on Friday.

This is why HSN shares have surged higher this morning. With investors expecting this deal to net them a nice return. Especially with CEO, Andrew Hansen, giving his seal of approval and voter backing.

As this morning’s announcement states:

Hansen’s Managing Director and CEO, Andrew Hansen, has agreed to work together exclusively with BGH Capital to seek to implement the Proposal pursuant to a co-operation agreement. As part of that co-operation agreement, Andrew Hansen has agreed to procure that with respect to Hansen shares that he owns or controls, those shares will be voted in favour of any scheme of arrangement to effect the Proposal, and will not be voted in favour of (and will be voted against) any competing proposal during an exclusivity period.

Therefore, until this exclusivity period is over, BGH has a solid foothold in getting this deal done.

But it doesn’t mean that rival bids aren’t possible. With the possibility for a third party to launch a competing offer following this exclusivity period.

Nevertheless, provided nothing untoward is found, Hansen shareholders have plenty to be smiling about.

What’s next for Hansen Technologies?

With the deed now public, the next six weeks will determine whether BGH goes ahead with the deal or not. What may prove to be a nervous wait for shareholders.

Depending on the decision BGH eventually makes, it will have large ramifications for investors.

After all, they’re either going to walk away with the cash result, or BGH is going to walk away from the deal. With the latter scenario more than likely to dampen the share price if it were to occur.

Either way, investors will simply have to wait and see.

In the meantime, if you’re looking for more AI-related investment opportunities, we can help. Our latest report on this sector showcases precisely why we’re seeing so much market action. Including five up-and-coming AI small-cap plays that are worth taking a closer look at.

Check out the full report for yourself, right now, right here.


Ryan Clarkson-Ledward,
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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