- IT company DWS (DWS) has seen its shares soar over 30 per cent today after HCL Australia Services has put in an offer to purchase the company
- The companies have entered into a Scheme Implementation Agreement, under which HCL will purchase all of DWS shares
- Under the scheme, DWS shareholders will receive a total cash consideration of $1.20 per DWS share, plus an additional three cents per share dividend
- Each member of the DWS Board recommends shareholders vote in favour of the scheme as they intend to do the same
- In particular, DWS’ largest shareholder, the company Managing Director and CEO, Danny Wallis, will be voting in favour of the deal
- Shareholders will be able to vote at a meeting expected to be held in November
- DWS is up 30.8 per cent and is trading for $1.18 just before market close
IT company DWS’ (DWS) shares are up over 30 per cent today after HCL Australia Services has put in an offer to purchase the company.
The companies have entered into a Scheme Implementation Agreement which will see HCL purchase all of DWS’ shares.
HCL Australia is owned by India-based giants HCL Technologies, who is listed on the National Stock Exchange of India and has a market capitalisation that exceeds US$29 billion (approx A$39.6 billion).
Under the scheme, DWS shareholders will receive a total cash consideration of $1.20 per DWS share, plus an additional three cents per share dividend. This represents a significant premium of 36.7 per cent to the closing price of 90 cents on September 18 2020.
If the scheme is successful, DWS will become a subsidiary of HCL. The deal values DWS’ issued equity at $162.15 million.
However, shareholders will need to approve the deal before it can go ahead. Each member of the DWS Board recommends shareholders vote in favour of the scheme as they intend to do the same.
Additionally, DWS’ largest shareholder, Managing Director and CEO, Danny Wallis, who controls 42.7 per cent of shares will be voting in favour of the deal.
“The scheme represents an outstanding outcome for all DWS stakeholders: shareholders, employees, clients and other business partners,” he said.
“The opportunity to realise certain value at a significant premium represents a great outcome for our shareholders, who have been supportive over the company’s long history of its strategy and direction,” he added.
HCL’s Executive Vice President & Country Manager, Australia & New Zealand Michael Horton is excited for the expansion of HCL.
“HCL has invested in the region for over 20 years and is committed to enabling digitilisation and growing the local ecosystem. DWS has forged a sterling reputation, powered by highly talented consultants who enable organizations to be at the cutting edge of technology,” he said.
“We look forward to welcoming the DWS team to HCL and creating enhanced global learning and career opportunities for them,” he added.
Shareholders will be able to vote at a meeting expected to be held in November.
DWS is up 30.8 per cent on the market this afternoon and is trading for $1.18 just before market close.