- Investment management company Teaminvest Private Group (TIP) has agreed to a 100 per cent acquisition of Automation Group Investments
- The company will acquire Automation Group for an initial sum of approximately $2.66 million, plus a secondary deferred payment
- Both the initial and deferred payments will be settled through the issuance of Teaminvest shares to Automation shareholders
- The company’s acquisition will include purchasing approximately $600,000 of debt owed by Automation Group
- Teaminvest Private Group is up 6.8 per cent on the market today, trading for 55 cents per share
Investment management company Teaminvest Private Group (TIP) has agreed to a 100 per cent acquisition of Automation Group Investments.
The company will acquire Automation Group for an initial sum of approximately $2.66 million, plus a secondary deferred payment. The deferred payment will be based on a percentage of revenue generated under a contract for the 2020 and 2021 financial years.
The deferred payment will be payable after the 2021 financial year audit is completed.
Both the initial sum and deferred payment will be settled by issuing Teaminvest shares to Automation Group shareholders. The price at which those shares are issued be determined by the 30-day volume-weighted average prices prior to the payment dates.
However, the proposed acquisition transaction must first gain approval from the shareholders of Teaminvest. The deferred payment is also subject to shareholder approval, which should be obtained at the company’s 2021 annual general meeting (AGM).
If company shareholders do not approve the deferred consideration, then Teaminvest will settle the payment with cash.
Teaminvest has also agreed to purchase approximately $600,000 of Automation Group’s debt. Automtion currently owes this amount to entities associated with the vendors of the proposed acquisition transaction.
However, the debt will remain in Automation Group, even after it is purchased by Teaminvest. The company expects to receive a return on investment, in line with the existing repayment and interest schedule.
Teaminvest will complete the acquisition of the debt on July 31, 2020. This transaction is not conditional on the separate acquisition of shares which will purchase Automation Group.
Teaminvest Private Group is up 6.8 per cent on the market today, trading for 55 cents per share at 12:47 pm AEST.