Apiam Animal Health (AHX AU): Adamantem's A$0.87/Share Offer

• Back on the 18th August, Apiam Animal Health (AHX AU), Australia’s largest rural and regional veterinary group, announced a A$0.88/share non-binding indicative Offer from PE outfit Adamantem Capital.

• That was a 64.5% premium to last close. If terms were firmed, shareholders would also be afforded a partial scrip option.

• Apiam and Adamantem have now firmed terms at A$0.87/share, including a permitted fully franked dividend up to A$0.10/share. Mix & match options available, including 100% scrip.

Apiam is super illiquid - look away now if that is not your thing.

The Trade:

• Clean deal.

• Trading super tight at 1.8%/5% gross/annualised spread, assuming late Feb payment.

• Unless in - and/or can take advantage of the franking credits - I’d look elsewhere.