Whispir Ltd, an ASX-listed tech firm specializing in software-as-a-service, saw a 60% surge in share price from 30 to 48 cents earlier this week, following an unconditional takeover bid by Soprano Design Australia Pty Ltd. Soprano has proposed to purchase all of Whispir's shares at the current trading level, an offer that matches their final stated price unless a competing or alternative bid arises.
Soprano, which currently owns a 15% stake in Whispir, has committed to opposing any potential rival bids. The company's chair, Richard Favero, anticipates a low probability of competing proposals. This takeover offer provides cash certainty for Whispir shareholders and eliminates risks associated with owning listed company shares, while also exempting them from stamp duty or brokerage fees.
Despite a 2% decrease compared to last year, Whispir's shares have rebounded in 2023 with a 12% increase. This follows recent financial difficulties for Whispir, which saw its shares drop from a peak of $4.97 and its market cap decrease to $516 million. Among the stakeholders who trimmed their stakes were AustralianSuper and outgoing CEO Jeromy Wells, who reduced their holdings to 5.9% and 9.5%, respectively.
In response to these challenges, Whispir implemented a restructuring plan that included a 30% headcount reduction for an annual saving of $20 million. The company also raised $3.25 million through a private placement of 25¢ shares. As part of this transition, Mr Wells is moving into the role of executive director while the company searches for a new CEO.
Meanwhile, Soprano has been expanding its own stake in the market. After delisting Nitro Software, Potentia Capital purchased a 25% stake in Soprano for $66 million from ARN Media. Under the leadership of ex-Appen boss Mark Bryan, Soprano now boasts 4500 enterprise and government customers and generates 70% of its revenue outside Australia. The proposed merger with Whispir could potentially lead to more focused private ownership.
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