Shares of Route Mobile Ltd. surged before declining on Monday after Proximus Group agreed to buy a 57.6% stake in the company.
The share-purchase agreement will result in Proximus Group acquiring control over the cloud communication platform provider for about Rs 5,922 crore in cash at Rs 1,626.40 per share, according to an exchange filing on Monday.
The proposed sale of shares by the promoters of Route Mobile shall impose an obligation on the Belgium-based digital services provider to make an open offer. Proximus Group will buy the shares through its unit, Proximus Opal, which will make an open offer for another 26% of Route Mobile at the same price.
As part of the agreement, Clear Bridge Ventures, the founding shareholders of Route Mobile, will reinvest 299.6 million euro in Proximus Opal for up to 14.5% stake in the company.
Shares of Route Mobile jumped as much as 8.3% to Rs 1,759.90 apiece, the highest since Feb. 10, 2022. The stock pared gains to trade 0.74% lower at Rs 1,613.30 per share, compared to a 0.29% advance in the benchmark NSE Nifty 50.
The total traded quantity so far in the day stood at 31 times the 30-day average volume.
Out of the six analysts tracking the stock, five maintain a 'buy' and one recommends a 'hold', according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 6.8%.
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