Rhipe (ASX:RHP) set to vote on Crayon's buyout bid

Company News

by Lauren Evans

Cloud services company Rhipe (ASX:RHP) has announced that it has entered into a binding scheme implementation deed with global IT consultancy Crayon. The scheme proposes that Crayon will acquire 100 per cent of the shares in Rhipe.

Rhipe is a leading cloud software licensing expert in the Asia-Pacific region. Crayon is a global leader in software asset management and cloud optimisation with employees in over 35 countries, with its head office in Oslo, Norway. 

If the scheme proceeds, Rhipe shareholders will receive a scheme consideration of $2.50 cash per share. In addition, Rhipe intends to declare a fully franked special dividend of up to 13 cents per share to be paid on or shortly before the implementation date of the scheme.

The Rhipe Directors unanimously recommend that Rhipe shareholders vote in favour of the scheme, in the absence of a superior proposal.

Rhipe Chairman, Gary Cox said, “In the Rhipe Board’s view, the all cash price at a significant premium to the recent VWAP trading performance reflects the inherent value of Rhipe’s business operations, platform and growth strategy throughout Asia Pacific. Rhipe’s partners and customers will benefit from the broader global service capability from a combined Crayon and Rhipe. In addition, Crayon’s offer is positive news for Rhipe’s staff, as we believe there will be increased opportunities to develop new technologies and products, and grow their careers.”

One of Rhipe's major shareholders, Tutus McDonagh, has confirmed it intends to vote in favour of the Scheme.

Shares in Rhipe (ASX:RHP) are trading 0.6 per cent lower at $2.50. 

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