Dimension Data (DiData) has announced the details of the tender offer for the outstanding shares in Proxicom, the US company for which DiData outbid Compaq last week.
The cash tender offer is for $7.50 per Proxicom share. The offer and withdrawal rights expire on 14 June at midnight New York City time, unless extended.
The tender offer is conditional upon, among other things, the valid tendering before the expiration date of at least a majority of the shares of Proxicom then outstanding on a fully diluted basis, together with any shares then owned by DiData and its associates.
DiData entered into an agreement to acquire the US-based company after outbidding computer giant Compaq.
Compaq decided last week not to increase its earlier bid of $5.75 a share, leaving Proxicom free to accept DiData`s counteroffer.
This surprised many market players, who were betting on a bidding war between DiData and Compaq.
The Proxicom share closed at $7.41 on Nasdaq on Friday, unchanged from Thursday`s close. It was trading at $1.81 as recently as mid-April, before Compaq announced its bid. The DiData share closed at R38.10 on the JSE on Friday, down 2.8% from Thursday`s R39.90 close.
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