🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Australia's Citadel Group gets $326 mln bid from Pacific Equity

Published 14/09/2020, 01:40 pm
© Reuters.
CGL
-

Sept 14 (Reuters) - Citadel Group Ltd CGL.AX on Monday said an entity owned by the country's biggest private equity firm Pacific Equity Partners (PEP) proposed to acquire the Australian software company for A$448.6 million ($326.49 million).

Tech-focused companies are seen as winners in the COVID-19 era as the shift to working from home drives people to leverage technology to get things done efficiently and remotely.

The deal will take place via a scheme of arrangement, with the offer representing a premium of 43.2% to Citadel's closing price on Friday.

Citadel Chairman Peter Leahy said its customers will benefit from access to a broader product suite and service capability with PEP's backing.

The board has recommended that shareholders vote in favour of the deal in the absence of a superior bid, the Canberra-based information technology services provider said.

The company, which posted a 25% jump in annual core earnings last month, said it plans to declare a special dividend of up to 15 cents per share that will enable shareholders to receive up to 6.4 cents of franking credit benefits.

($1 = 1.3740 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.