Members trading SPA3 Investor on the USA market, please be aware of the January 27th announcement whereby AZPN agreed to allow EMR to buy it’s remaining stake in the company.
The SWS public portfolio investment plan has a rule for takeover/merger events.
" Where a position becomes the subject of a takeover it will be closed on the 20th trading day after the initial takeover announcement and no further positions will be taken whilst under takeover."
20 market days after the announcement is February 24th.
Here are some details on the news.
Emerson (NYSE: EMR) has announced an agreement to acquire the remaining shares of Aspen Tech (NASDAQ: AZPN) for $265.00 per share in an all-cash tender offer. The transaction values the minority stake at $7.2 billion, with a total company valuation of $17.0 billion in market capitalization and $16.8 billion in enterprise value.
Emerson currently owns approximately 57% of Aspen Tech following its majority investment in 2022. The transaction, unanimously approved by both companies’ boards and recommended by Aspen Tech’s Special Committee, will make Aspen Tech a wholly owned subsidiary of Emerson. The deal is expected to close in the first half of 2025, subject to customary conditions, including a non-waivable requirement that majority of minority stockholders tender their shares.
Upon completion, Aspen Tech will cease trading on NASDAQ. Emerson plans to finance the acquisition through cash on hand and debt financing.
Could the deal fall through?
It’s unlikely but possible, hence the 20 day rule in the Public Portfolio investment plan.
Members holding AZPN do not need to do anything within their brokerage platform and will receive $265.00 a share into their brokerage account as the shares are acquired automatically.
Alternatively, members may wish to sell their holdings of AZPN on February 24th, if they have adopted the takeover rule as part of their own investment plan.
To record this transaction in the Portfolio Manager, members should record a SELL against the open position and add a journal note regarding the merger/takeover and the subsequent delisting of AZPN.
AZPN will be removed from the SPA3 Investor USA watchlist once the above action has been completed.