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QANTM Intellectual Property (ASX: QIP) has confirmed that it has another potential suitor in the wings after revealing that Sydney-based private equity group Adamantem Capital has made a $254 million takeover bid for the intellectual property business owner.
Adamantem’s overtures follow an announcement by QANTM on 27 February that UK-based IP company Rouse International Holdings had put forward a non-binding proposal for the business.
The Melbourne-headquartered QANTM has not revealed the price being offered by Rouse, but says Adamantem’s indicative bid is higher, although it ‘has not yet been comprehensively assessed by the QANTM board’.
“Under the exclusive due diligence arrangements, which are ongoing, Rouse has certain rights which will be discussed between Rouse and QANTM,” says the company.
The proposal by Adamantem Capital is conditional on the suitor being granted the opportunity to conduct due diligence.
“No agreement has been reached between QANTM and any party in relation to the value, structure or terms of a transaction,” says QANTM.
“There is no certainty a control transaction capable of being considered by shareholders will eventuate.”
While shares in QANTM surged almost 19 per cent to a high of $1.65 in early trading today, investors remain cautious as to the probability of a firm offer being forwarded for the company.
The Sydney-based Adamantem Capital was founded in 2016 and is co-led by Andrew Bullock, Angus Stewart and Anthony Kerwick.
The group has investments in a range of industries including IT services, consumer products, medical and environmental services.
Rouse International, which operates 16 offices in 12 jurisdictions, with a string focus on what it sees as ‘more challenging markets such as Africa, Asia, the Middle East and Russia’.
In February’s announcement to the ASX, QANTM described Rouse as ‘highly complementary in both geographic and service lines’ to its own business.
The UK group’s interest in QANTM would see it establish its first physical presence in Australia.
QANTM posted a solid performance in the first half of FY24 with revenue up 8.1 per cent to $74.2 million and underlying profit before tax surging 43 per cent to $9.6 million.
CEO Craig Dower describes the result, released on 19 February, as the best since the company listed in 2016.
The company owns a portfolio of intellectual property businesses in Australia, New Zealand, Singapore, Malaysia, Hong Kong and the United Kingdom under the brands Davies Collison Cave, FPA Patent Attorneys and Sortify.tm – including Sortify’s brands DIY Trademarks, Trademarks Online and Trademark Planet.
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