On the 23rd July, international money transfer play OFX (OFX AU) announced a Process Deed with Equals Group, potentially leading to a A$1.00/share Offer by way of a Scheme
A$1.00/Share represent a 108% premium to undisturbed. Equals Group was granted four weeks of due diligence. That DD window closed with no ASX announcement. My inquiries indicated all was good.
After shares materially reversed, all-but-suggesting a busted deal, OFX finally announced DD had been extended to the 25th September. This morning, DD has been further extended to the 30th October.
OFX is illiquid. Look away now if this is not your thing.
The Trade:
Terms remain indicative; although wording in the announcement appears upbeat.
The vacuum of news on this deal is not - or has not been - ideal.
The downbeat trading update doesn’t lessen concerns.
Trading at a busted 75.5% gross spread.
IF illiquid arbs are your bag - I might get some exposure. Not a lot.
Equals reducing terms - or walking - are possible outcomes.
The positive spin here is that the share price decline occurred on small volume; possibly indicating both buyers/seller are simply full.