SYDNEY, AUSTRALIA: Woolworths Group Limited (ASX:WOW) will acquire a controlling interest in MyDeal.com.au Limited (ASX:MYD) MyDeal by way of a Scheme of Arrangement.
MyDeal is an online retail marketplace focused on home and lifestyle goods.
Woolworths Group proposes to acquire all of the issued shares in the Company other than certain shares held by Sean Senvirtne and other key management personnel.
Under the Transaction, MyDeal shareholders will receive $1.05 per share in cash.
The cash consideration of $1.05 per share values MyDeal’s equity at $271.8 million and enterprise value (“EV”) at $242.6 million.
Upon completion of the Scheme:
● Woolworths Group will own 80.2% of the shares outstanding in MyDeal;
● Entities associated with key management of MyDeal will retain an aggregate of 19.8% of the shares outstanding in MyDeal (“Retained Shares”) as follows:
o Sean Senvirtne – 18.9%;
o Kate Dockery – 0.5%; and
o Dean Ramler (together “Key Management Personnel”) – 0.4%
In order to achieve this capital structure, Sean Senvirtne will sell 60% of his current MyDeal shareholding into the Scheme and Kate Dockery and Dean Ramler will each sell 70% of their respective current MyDeal shareholdings into the Scheme.
Sean Senvirtne will continue as CEO of MyDeal and in conjunction with the other Key Management Personnel and MyDeal’s broader existing management team, will lead the business through its next phase of growth in partnership with Woolworths Group.
MyDeal Chairman, Paul Greenberg, said: “The Scheme is an attractive transaction which provides an all-cash option for MyDeal shareholders.
The MyDeal Board has unanimously concluded that the Scheme represents a compelling outcome for our shareholders, customers, suppliers, and staff.
The cash consideration of $1.05 per share represents a highly attractive premium to current trading levels and a premium to the IPO price.
“The price is a very tangible measure of the value and quality of MyDeal’s industry-leading online marketplace platform.
At a significant premium to the current trading price, Woolworths Group’s offer provides MyDeal shareholders with certainty of value and the opportunity to realise their investment in full for cash.”
MyDeal CEO, Sean Senvirtne, said: “The transaction is a highly attractive proposition for MyDeal shareholders and represents a significant premium to MyDeal’s share price. I am excited to retain a significant and continued interest in MyDeal and to lead the business through its next stage of growth to become Australia’s leading marketplace.
Woolworths Group is Australia and New Zealand’s largest retailer. Woolworths Group employs more than 180,000 team members and serves more than 20 million customers a week.
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