Donaco International (ASX:DNA) entered into a binding scheme implementation deed with On Nut Road for On Nut Road to acquire Donaco shares that it does not already own via a scheme of arrangement for AU$0.045 cash per share, according to a Monday Australian bourse filing.
On Nut Road, which holds a 12.84% stake in Donaco, is a special-purpose vehicle managed by Argyle Street Management, a Hong Kong licensed fund manager.
The Donaco board recommends that shareholders vote in favor of the scheme in the absence of a superior proposal and subject to an independent expert concluding it is in the best interest of shareholders.
Donaco's largest shareholders, Lee Bug Huy and Lee Bug Tong, who collectively hold a stake of 42.17% of Donaco, indicated their support for the proposed acquisition.
Donaco International's shares rose almost 37% in recent trading on Monday, earlier hitting a 52-week high.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.