The all-cash offer prices MyDeal at $1.05 per share, a significant 62.8% premium to the last closing price of 65 cents.
MyDeal CEO and founder Sean Senvirtne and other key management personnel will sell 60-70% of their current shareholdings into the takeover scheme. However, will retain a 20% minority shareholding post-takeover and continue to lead the business.
MyDeal’s board believes this is a compelling offer and recommends shareholders to vote in favour of the transaction.
Woolworths CEO Brad Banducci said “the addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs and materially expands our marketplace capabilities, especially in general merchandise.”
Woolworths Group eCommerce sales rose 33.4% to $1.46bn in the third-quarter of FY22, just shy of 10% of overall sales.
MyDeal listed in October 2020, when the bullish run for eCommerce and tech stocks was on its last legs.
A familiar name like Kogan (ASX: KGN) topped out around $24.80 in October 2020, after an extraordinary 570% rally from covid lows. The stock is now down -85% from all-time highs.
The MyDeal IPO was priced at $1.00 per share and briefly rallied to $2.20 on its 22 October debut.
It's been downhill ever since.
Woolworths has offered MyDeal investors a chance to wind back the clock and for IPO investors, to exit for a small profit.
Up until today, MyDeal shares were down in almost every timeframe:
-37% from IPO offer price
- 64% from debut close price
Finance Writer & Social Media
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