Insights

Hansen (ASX:HSN) share price sinks 13% after withdrawn acquisition proposal

The offer is off the table and here are the details…
The post Hansen (ASX:HSN) share price sinks 13% after withdrawn acquisition proposal appeared first on The Motley Fool Australia. –

The Hansen Technologies Ltd (ASX: HSN) share price is taking a dive to the downside today.

This follows news that private equity firm BGH Capital has withdrawn its previous acquisition proposal for the billing technology company.

In early morning trade, the Hansen share price is trading 13.13% lower to $5.36.

Why is the Hansen share price on the move today?

Investors have decided to jump the Hansen ship on Monday morning after the company notified shareholders that its previous acquisition proposal from BGH Capital has been withdrawn.

According to the release, BGH Capital has informed Hansen that it has decided to withdraw its unsolicited proposal to acquire the billing company. As a result, all discussions pertaining to the proposal have ceased.

This decision has followed the conclusion of BGH’s extensive due diligence. Interestingly, the private equity firm did not specify any specific details as to why it has withdrawn from the proposal.

In fact, BGH appeared to remain positive on the company. The release stated, “BGH Capital has advised the company that it continues to see Hansen as a highly effective organisation with an outstanding management team and strong prospects.”

Additionally, BGH reported no issues that Hansen considers material in its current operations and strategy.

Despite this news, it looks as though investors are concerned about the latest announcement, sending the Hansen share price lower. There seems to be a lingering worry: why has the offer been withdrawn if there isn’t a material issue?

Furthermore, Hansen Chairman David Trude responded to the news, stating:

The Hansen business continues to go from strength to strength. We were particularly pleased with the strategic customer wins during the year including Telefonica, DISH, Western Power and Nautilus Solar. Significant new business wins, coupled with a continued focus on our aggregation strategy, reinforce our commitment to, and confidence in, our long-term revenue target of $500 million in FY25.

Original acquisition proposal

Originally, BGH Capital put forward a conditional non-binding proposal for 100% of Hansen at a price of $6.50 cash per share. This offer was made on 7 June 2021 which sent the Hansen share price skyrocketing by 22%.

At the time, all the directors of Hansen intended to unanimously recommend the proposal except for CEO Andrew Hansen. For reference, Mr Hansen holds ~17.5% of the Hansen shares on issue, amounting to approximately $216.3 million in value.

Finally, based on the Hansen share price, the company commands a $1.2 billion market capitalisation.

The post Hansen (ASX:HSN) share price sinks 13% after withdrawn acquisition proposal appeared first on The Motley Fool Australia.

Should you invest $1,000 in Hansen Technologies right now?

Before you consider Hansen Technologies, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Hansen Technologies wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Hansen Technologies (ASX:HSN) share price takes off on record FY21 results

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hansen Technologies. 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!