Insights

Rhipe (ASX:RHP) share price drops after accepting takeover bid

The company has agreed to Crayon’s bid of $2.50 a share.
The post Rhipe (ASX:RHP) share price drops after accepting takeover bid appeared first on The Motley Fool Australia. –

The Rhipe Ltd (ASX: RHP) share price is falling today after the company said it had agreed on terms with Norwegian company Crayon, to sell 100% of its shares for $2.50 each.

At the time of writing, shares in the company are trading for $2.48 – down 1.59%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.35% higher.

Let’s take a closer look at this latest update.

Why the Rhipe share price is in focus

In a statement to the ASX, Rhipe confirmed it will recommend that shareholders accept the bid Crayon submitted last week. The news sent the Rhipe share price surging to a new 52-week high of $2.56.

The bid for $2.50 per share represents a 30% premium on the 1-month volume weighted average price (VWAP) and a 37% premium on the 3-month VWAP of $1.82. Rhipe intends to pay a special dividend of up to 13 cents a share, fully franked before the transaction is finalised. Any amount paid by the board will be deducted from Crayon’s final payment. The deal is not conditional on finance or due diligence.

Shareholders should be able to vote on the deal in September, and if all goes to plan, the sale will be finalised by October.

In other news, Rhipe says its foreshadowed operating profit for FY21 of $18 million will be met. It also expects earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the financial year to be around $17 million.

Management commentary

Rhipe Chair, Gary Cox, said

The rhipe Board has unanimously concluded the Scheme represents an attractive outcome for our shareholders, partners and customers, and staff. In the rhipe Board’s view, all cash price at a significant premium to the recent VWAP trading performance reflects the inherent value of rhipe’s business operations, platform, and growth strategy throughout Asia Pacific.

rhipe’s partners and customers will benefit from the broader global service capability from a combined Crayon and rhipe. In addition, Crayon’s offer is positive news for rhipe’s staff, as we believe there will be increased opportunities to develop new technologies and products and grow their careers.

The post Rhipe (ASX:RHP) share price drops after accepting takeover bid appeared first on The Motley Fool Australia.

These 3 stocks could be the next big movers in 2021

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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 15/2/2021

More reading

Why Cettire, Damstra, IGO, & Rhipe shares are storming higher

Why the Rhipe (ASX:RHP) share price is surging 21% higher today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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!