The Mainstream Group Holdings Ltd (ASX: MAI) share price suddenly jumped 60% before close on Monday. What happened?
The post Why the Mainstream (ASX:MAI) share price is up 62% this week appeared first on The Motley Fool Australia. –
It was a quiet week for the Mainstream Group Holdings Ltd (ASX: MAI) share price. That was until it suddenly jumped 60% before close on Monday. At the time of writing, the Mainstream share price is up 0.76%. trading at $1.99.
Mainstream share price jumps on superior takeover
On March 9, Vistra offered to acquire 100% of Mainstream shares at $1.20 per share. A go-shop period was provisioned to allow Mainstream to seek out competing offers until 11 April.
On Monday, the company announced that a superior proposal has also emerged from SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) for $2.00 cash per share, a 67% premium to the price per share offered by Vistra.
Mainstream has notified Vistra, and Vistra has until 16 April to match or offer more favourable terms.
Mainstream has entered into a Scheme Implementation Deed with SS&C, conditional upon the following:
- Vistra not exercising its matching right.
- Mainstream terminating its Scheme Implementation Deed with Vistra.
- Mainstream paying a $1.708 million break fee to Vistra.
Who’s acquiring Mainstream?
SS&C is the world’s largest hedge fund and private equity administrator. Its business model combines end-to-end expertise across financial services operations within software and solutions. In particular, to service the financial services and healthcare industries.
The company owns and operates the full technology stack across securities accounting, front-to-back office operations, performance and risk analytics, regulatory reporting, and healthcare information processes.
Over 18,000 financial services and healthcare organisations around the world manage and account for their investments using SS&C’s products and services.
SS&C has a history of acquisitions and views Mainstream as an attractive opportunity to accelerate its growth, particularly in the Australian market.
Share price snapshot
Mainstream is a fund administrator for fund managers, superannuation trustees, and listed companies with a focus on the Asia-Pacific region. The company has over 362 clients and 1,202 funds with over $224 billion in funds under administration.
The Mainstream share price rebounded strongly from its COVID lows of 25 cents to all-time record highs of $1.250 last Wednesday.
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.
*Returns as of February 15th 2021
- Why the Mineral Commodities (ASX:MRC) share price is moving higher
- ANZ (ASX:ANZ) share price dips as bank focuses on AI automation
- Analyst downgrades AstraZeneca stock due to vaccine side effect concerns
- Macquarie (ASX:MQG) just delivered ASX lithium shares a big boost
- Why IGO, Orocobre, Splitit, & Zip shares are charging higher
Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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.