Pioneer confirms takeover offer
Business News, Monday, 29 April 2019, © Copyright 2019 Business News Pty Ltd.
Pioneer Credit’s shares have surged 27.4 per cent to close at $2.51 each, after the company confirmed it has received a takeover proposal at a “material premium” to its current share price.
Pioneer confirmed it had received at least one takeover offer, as suggested in an article published by the Australian Financial Review on Sunday.
The AFR said US-based Bain Capital was among three potential suitors for Pioneer, but the debt management company did not disclose if this information was valid.
In a statement, Pioneer said it appointed Azure Capital as its corporate advisor to assess several confidential, non-binding, indicative proposals.
The most comprehensive of which, Pioneer said, is a non-binding, indicative proposal for the acquisition of all of its shares by way of scheme of arrangement at a material premium to its current share price.
“The proposals are not regarded as sufficiently advanced to warrant further disclosure at this time,” Pioneer said.
“Shareholders should note that there is no certainty that any proposal will result in a binding and board-recommended offer and do not need to take any action at this stage.”
On February 26, shares in Pioneer Credit fell 29 per cent after the company reported a statutory net profit of $5.46 million for the half-year to December.
This was down 32 per cent on the prior corresponding period.