In today’s briefing:
- Dropsuite (DSE AU): Scheme Vote on 9 May
- Dropsuite (DSE AU): 9th May Vote On NinjaOne’s Offer
- S&P/ASX 200 Volatility Rises: Market Down Amid US Tariffs and S&P 500 Futures Plunge
Dropsuite (DSE AU): Scheme Vote on 9 May
- The Dropsuite Ltd (DSE AU) IE considers NinjaOne’s A$5.90 offer fair and reasonable as it is above its A$3.92-5.88 valuation range.
- The offer is conditional on shareholder and FIRB approval. Despite the largest shareholder’s selldown, the vote remains low-risk.
- The offer is attractive and represents an all-time high. At the last close and for a 30 May payment, the gross/annualised spread is 1.7%/11.5%.
Dropsuite (DSE AU): 9th May Vote On NinjaOne’s Offer
- On the 28th January 2025, Dropsuite Ltd (DSE AU), a backup, recovery and protection software company, entered into a Scheme Implementation Deed with Texas-based IT automation outfit NinjaOne.
- NinjaOne’s A$5.90/share Offer was a 34.1% premium to undisturbed. The Offer had the backing of Dropsuite’s largest shareholder, Topline Capital (31% – at the time!). Board/management held a further 9%.
- The Scheme Booklet is now out, with a Court Meeting on the 9th May, and expected payment on or before the 30th May. The IE (BDO) says “fair & reasonable“.
S&P/ASX 200 Volatility Rises: Market Down Amid US Tariffs and S&P 500 Futures Plunge
- Market Reaction: The announcement of US reciprocal tariffs led to significant declines in S&P 500 (-3.5%) and Nasdaq-100 (-4.4%) futures, with the VIX spiking from 20.00 to 23.45.
- Impact on Australia: Australia faces a 10% tariff, with the overall economic impact expected to be limited.
- S&P/ASX 200 (AS51 INDEX) Response: The S&P/ASX 200 dropped 2.1% in early trading, with its VIX index rising from 13.20 to 15.43. These are historically high but not extreme levels.
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