The ASX listed Mitula Group Limited and Tokyo Exchange listed LIFULL have reached an agreement to improve the overall offer by LIFULL to acquire 100 percent of Mitula. The improved deal sees LIFULL add an additional AUD 10 million in downside protection such that if the effective price being received by the Mitula Group shareholders falls below AUD 0.80 per share, cash will be added to the offer to bring the effective price up to AUD 0.80 per share.
In May this year, it was announced that LIFULL had made a combined cash and scrip offer to acquire 100 percent of the Mitula Group. The target price was AUD 0.85 per Mitula Group share, valuing the Mitula at AUD 190 million – a significant premium to where the shares had been trading. Each Mitula shareholder would receive AUD 0.80 cash per share for their first 20,000 shares they own and LIFULL shares for the balance of their shareholding.
Since the deal was negotiated, the LIFULL share price has experienced a roller-coaster ride. The share price declined from YEN 948 at announcement to a low of YEN 551 in mid-October and have since rebounded to YEN 841 per share.
Simon Baker, the Chairman of the Mitula Group, commented: “We are pleased with this revised offer that sees improved downside protection for the Mitula Group shareholders who are going to receive LIFULL shares.
“The Mitula Board continues to believe that bringing together the operations of Mitula with the LIFULL owned Trovit is in the best interests of both companies. Combined these businesses will have over 200 million visits per month to their sites, a strong foot print in many companies, and a great platform for driving future growth.”
The further downside protection agreed between Mitula and LIFULL has to be approved by the LIFULL shareholders at a special meeting being held on December 10, the day before the Mitula Group shareholders meet to vote on the overall deal.
SOURCE Mitula Group
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