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The hard bargain approach adopted by the board of aerospace technology manufacturer Quickstep Holdings (ASX: QHL) has successfully lifted the stakes with suitor ASDAM Operations increasing its bid by 43 per cent to $40 million.
Quickstep's board snubbed a 40 cents per share (cps) offer last month from ASDAM, which valued the company at approximately $28 million.
Today the group announced it had entered into a scheme implementation deed for ASDAM to acquire 100 per cent of Quickstep shares for 57.5cps.
The new price is almost triple QHL's share price in early November, but shareholders will still need to vote on the matter at a scheme meeting to be held in the first half of calendar 2025.
"The board has very carefully considered the terms of the proposal and is unanimous in its recommendation to shareholders," says Quickstep chairman Patrick Largier.
"The board believes the scheme provides attractive value and certainty for Quickstep’s shareholders and is a validation of the successful execution of Quickstep’s strategy and restructure efforts."
ASDAM is owned by funds managed by CPE Capital and is a defence customer of Quickstep - Australia's leading independent aerospace engineering, manufacturing and aftermarket services company.
"We believe ASDAM has strong strategic and cultural alignment with Quickstep and will support continued innovation in the Australian advanced manufacturing industry," says Quickstep CEO Demi Stefanova.
"Our focus remains on delivering outstanding products for our customers and the global markets in which we operate."
The board will unanimously recommend that shareholders vote in favour of the deal if no superior proposal is received and an independent expert concludes it is in the best interests of shareholders.
QHL shares are up 39.24 per cent this morning at $0.55.
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