Why the Asaleo Care (ASX:AHY) share price jumped to a 52-week high today

The Asaleo Care Ltd (ASX:AHY) share price has jumped to a 52-week high on Monday. Here’s why its shares are flying high today…
The post Why the Asaleo Care (ASX:AHY) share price jumped to a 52-week high today appeared first on The Motley Fool Australia. –

jump in asx share price represented by man jumping in the air in celebration

The Asaleo Care Ltd (ASX: AHY) share price has started the week on a positive note.

In afternoon trade the personal care products company’s shares are up 8% to a 52-week high of $1.41.

Why is the Asaleo Care share price jumping to a 52-week high?

Investors have been fighting to get hold of Asaleo Care shares amid speculation that another takeover approach is coming.

In December the company received an unsolicited, indicative, conditional, and non-binding proposal from Essity Aktiebolag (Essity) to acquire all the shares in the company.

Essity, a global hygiene and health company based in Sweden, offered $1.26 per share in cash, less any dividends or distributions declared or paid by Asaleo after 9 December.

That offer was subsequently rejected by the board in January on the belief that it fundamentally undervalued the company and was “materially inadequate.”

The board advised that it undervalued the company on a standalone basis and didn’t take into account its reset of the business. It notes that the latter is creating long term value and putting the company on a path towards sustainable and profitable growth.

Asaleo Chairman, Harry Boon said, “The Independent Board Committee, after careful review, considers that the Proposal fundamentally undervalues Asaleo Care, is materially inadequate and does not reflect the strategic value of the company to Essity. However, the Committee remains open to further engagement.”

Second time lucky?

This morning Asaleo confirmed that it is engaged in ongoing discussions with Essity in respect to a potential proposal to acquire the company.

As part of these discussions, Asaleo has granted limited due diligence to Essity. However, management has warned that there is no certainty that this process will result in a transaction. As a result, Asaleo shareholders do not need to take any action.

Management intends to provide a further update with its results announcement on 17 February.

All eyes will no doubt be on the Asaleo share price when that announcement is made.

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 February 15th 2021

More reading

Motley Fool contributor James Mickleboro 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 Why the Asaleo Care (ASX:AHY) share price jumped to a 52-week high today 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!