The Board of Directors of Veda Group (ASX:VED) announced today that the company entered into a binding agreement with Equifax where Equifax will acquire all of the shares in Veda, after the company was approached in September 2015.
Equifax to Acquire all Veda Shares for $2.825 Cash per Share
Equifax offers $2.825 cash per share for Veda and the transaction will be a scheme of arrangement. The offer represents an implied market capitalisation of approximately $2.5bn. Veda’s Chairman Helen Nugent said that the proposal is “an attractive outcome for shareholders” and underlines that the implied value “reflects Veda’s strong market position and its ability to deliver growth into the future."
Veda’s Board unanimously recommends that shareholders vote in favour of the offer as management believes the offer represents an attractive premium to Veda’s share price. The offer price is ~34% above the one-month average price leading up to the first proposal and it is the highest share price since its initial public offering in December 2013.
Veda Takeover: As it happened
On 18th September Veda Group received a conditional and non-binding Expression of Interest from Equifax to acquire all of the shares in Veda at $2.70 per share. On 6th October Veda announced that Equifax increased the offer to $2.825 cash per share following due diligence activity.
Veda was established in 1967 and focuses on credit information and data analytics in Australia and New Zealand. Veda provides its customers with data intelligence with helps both retail and commercial clients to make decisions on credit risks, verify identity, undertake digital marketing strategies or make employee background checks.
Veda’s CEO Ensure that Veda will Remain Strong Under Equifax’s Ownership
Veda’s CEO, Ms Nerida Caesar commented on the proposed takeover: “Veda is a strong and growing business built on partnerships with our valued customers. We have an important role to play in supporting our customer as they manage through disruption, innovation and evolving regulation which we help solve with tailored products, data, information and analytics.”
Nerida Caesar has a clear answer to those who are concerned that the takeover will diminish Veda’s quality: “If the transaction is finalized, under Equifax’s ownership, our customer relationships will continue to be my focus, and that of the entire team.”
Author: Simon Herrmann
Nov 23, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.