CloudCall, the software and telecommunications company, has seen its shares rally 64% to 78p after agreeing to be taken over by Xplorer Capital Management for £39.9 million.
CloudCall shareholders will be entitled to receive 81.5 pence for each share they own. That represents a premium of around 71.6% to the closing price of CloudCall shares on Wednesday and a 43.8% premium to the volume-weighted average price of CloudCall shares for the three months ended Wednesday, December 8.
The deal has been unanimously recommended by the CloudCall directors. Meanwhile, Xplorer Capital believes that CloudCall will benefit from returning to private ownership with the help of a growth-focused shareholder.
Peter Simmonds, Non-Executive Chairman of CloudCall, explained that the company “operates in a highly competitive environment where many of its peers are larger and better capitalised and CloudCall will require additional funding to continue to support its strategy and remain competitive.
“Against this backdrop, I believe the offer from Xplorer Capital represents an attractive premium, provides certain value today for CloudCall shareholders and provides CloudCall with the opportunity to access significant further capital to implement CloudCall's strategy in the future.”
CloudCall shares are traded on the London stock exchange's AIM (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But what shares are the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .
Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.