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- Supermarket giant, Woolworths (WOW) is set to purchase an 80 per cent controlling interest in online retail marketplace MyDeal (MYD)
- The two parties have entered into a binding scheme implementation agreement which will see MYD de-listed from the ASX
- Under the transaction, MyDeal shareholders will receive $1.05 per share in cash — representing a 62.8 per cent premium to the company’s closing price on May 19
- MYD CEO Sean Senvirtne, along with key personnel, will retain an aggregate of 19.8 per cent of shares, though they all intend to vote in favour of the transaction
- MYD shares jumped 55.8 per cent to $1 each, while WOW shares were up 0.65 per cent and trading at $35.41 at 12:14 pm AEDT
Supermarket giant Woolworths (WOW) is set to purchase an 80 per cent controlling interest in online retail marketplace MyDeal (MYD).
The two parties have entered into a binding scheme implementation agreement which will see MYD de-listed from the ASX.
Under the transaction, MyDeal shareholders will receive $1.05 per share in cash — valuing MyDeal’s equity at $271.8 million and implying an enterprise value of $242.6 million.
The cash consideration represents a 62.8 per cent premium to the closing price of MyDeal shares at 65 cents on May 19, 2022.
It’s also a 5 per cent premium to the company’s IPO offer price of $1.00 on October 22, 2020.
MYD CEO Sean Senvirtne will sell 60 per cent of his current MyDeal shareholding under the scheme but retain an 18.9 per cent interest in the business. Chief Product Officer Kate Dockery and Chief Merchandising Officer Dean Ramler will retain interests of 0.5 per cent and 0.4 per cent, respectively.
Sean Senvirtne will remain CEO of MYD, and key management personnel will also retain their positions.
The board of MYD unanimously urged shareholders to vote in favour of the transaction at an upcoming shareholder meeting planned for Q3 2022.
“The transaction is a highly attractive proposition for MyDeal shareholders
and represents a significant premium to MyDeal’s share price,” Mr Senvritne said.
“I am excited to retain a significant and continued interest in MyDeal and to lead the business through its next stage of growth to become Australia’s leading marketplace.”
If the shareholders vote in favour of the transaction, it’s expected to be implemented in Q4, 2022.
MyDeal shares jumped 55.8 per cent to $1 each at 12:53 pm AEST, while WOW shares were up 0.65 per cent and trading at $35.41 at the same time.
