Bidding war for the Mainstream (ASX:MAI) share price intensified today

The Mainstream share price jumped today as the group may get yet another higher takeover offer.
The post Bidding war for the Mainstream (ASX:MAI) share price intensified today appeared first on The Motley Fool Australia. –

The Mainstream Group Holdings Ltd (ASX: MAI) share price jumped after management backed a takeover bid by Apex Group.

The specialist fund administrator for the financial services industry has now determined that the $2.80 a share offer from Apex is superior to a rival bid.

But investors are betting that the bidding war for Mainstream isn’t over. This is why the Mainstream share price jumped 2.2% to retest its record high of $2.84 in the last hour of trade.

Betting on a higher offer for the Mainstream share price

The higher bid is assumed to come from SS&C Technologies, Inc and SS&C Solutions Pty Ltd (together, SS&C).

SS&C and Mainstream signed a Scheme Implementation Deed (SID) that was amended on 11 April this year. Under the terms of the deed, Mainstream has notified SS&C of Apex’s superior offer that’s made on more favourable terms.

SS&C has until next Thursday to match or better the Apex proposal.

Six times is never enough

“Mainstream is continuing to work with SS&C in relation to the proposed scheme of arrangement under the terms of the SS&C SID and the Mainstream directors have not, as at the date of this announcement, withdrawn their recommendation of the scheme of arrangement with SS&C,” said Mainstream.

“Mainstream has not entered into any scheme implementation deed, conditional or otherwise, with Apex.”

Little wonder that the market is confident of a higher bid from SS&C. The suitor exercised its matching rights six times before!

Multiple bids sees Mainstream offer price surge 133%

The previous occasion saw Apex making a $2.75 a share offer for the Mainstream share price on 26 May. SS&C beat that offer by 1 cent on 1 June.

But SS&C has come a long way from its original $2 a share offer in April. It’s nice to be wanted!

The takeover drama didn’t even start with SS&C. The first suitor that came knocking was from Vistra Group.

First bid for the Mainstream share price

Vistra was first to sign a SID with a offer price of $1.20 a share before SS&C entered the rink.

Vistra had the right to match the offer but elected not to. It didn’t walk away empty handed though as it got a $1.7 million break fee from Mainstream. Small price to pay given the latest offer for its shares!

Boom times for M&A

Merger and Acquisition (M&A) activity is hotting up on the ASX. As reported earlier today, the Iress Ltd (ASX: IRE) surged on rumours that a bidder is close to showing its hand for the financial services group.

Ultra-low interest rates and rebounding economic activity are giving cashed up buyers a case of FOMO.

It isn’t only home buyers that are afflicted with this syndrome. But Mainstream shareholders won’t be complaining.

The post Bidding war for the Mainstream (ASX:MAI) share price intensified today appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

M&A rumour fires up the Iress (ASX:IRE) share price today
This ASX tech share’s also a COVID-recovery stock: fund manager

How to score a sneaky bargain: ASX fund manager

Brendon Lau does not own shares mentioned in this article. Follow me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MainstreamBPO Limited. 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.

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!