Insights

Amaysim (ASX: AYS) announces takeover as it prepares to delist

The Amaysim takeover is one step closer after the company announced that WAM Capital will buy all of its shares. Here’s the rundown.
The post Amaysim (ASX: AYS) announces takeover as it prepares to delist appeared first on The Motley Fool Australia. –

Bigtincan share price higher on acquisition represented by big fish eating smaller fish.

The Amaysim Australia Ltd (ASX: AYS) and the WAM Capital Limited (ASX: WAM) share prices will be ones to watch this morning as details emerge of a takeover bid. Both companies announced an deal for WAM to acquire all of Amaysim’s ordinary shares, subject to the sale of Amaysim’s mobile business to Optus.

The Amaysim share price closed at 73 cents yesterday and is up 2.4% to 76 cents at the time of trading, while WAM closed at $2.25 and is trading flat at the same price today. 

Details of the takeover bid

Amaysim shareholders will have the choice of accepting the offer in cash, scrip, or a combination of both.

The cash offer stands at 69.5 cents per Amaysim share. The scrip meanwhile, is for 1 new WAM share for every 2.7 Amaysim shares, representing a value of 8.33 cents.

As mentioned, this offer is subject to the sale of Amaysim’s mobile business to Optus, which was announced on 2 November and is expected to be completed shortly after 1 February 2021.

WAM management says the scrip offer will benefit its shareholders with shares issued at a premium to the underlying net tangible assets (NTA), which are accretive to WAM’s pre-tax NTA.

Amaysim Management meanwhile, says that its shareholders would receive distributions of approximately 69.5 cents per share from this deal and the Optus sale, after transaction costs.

The Amaysim’s board has recommended that all of its shareholders accept the offer from WAM.

Why is Amaysim selling itself

Amaysim is Australia’s leading low-cost mobile network reseller, known as the mobile virtual network operators (MVNO). It has 1.19 million subscribers or about 35% of Australia’s MVNO market.

The company’s 10-year wholesale contract is due to expire in June 2022, which prompted the company to put itself in the market.

In November,  Optus offered $250 million to Amaysim’s shareholders to purchase its mobile business. The proposal was submitted to the ACCC for review, and has been given the green light by the competition watchdog.

However,  analysts believe that the proposal from Optus is unorthodox – as it wants to only buy the 1.19 million Amaysim customers and not take over the entire mobile business. This means that Amaysim management must use about $100 million of the proceeds to wind up the company, leaving shareholders with only $150 million from that transaction.

Amaysim shareholders are due to vote on the Optus deal in January 2021.

About the WAM share price and the Amaysim share price

The WAM share price has come back full circle, back to where it started at the beginning of January after losing 35% of its value in March and dropping to its 52-week low of $1.465.

Meanwhile, the Amaysim share price has gained almost 90% on a year-to-date basis.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Amaysim (ASX: AYS) announces takeover as it prepares to delist appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!