The Nuheara Ltd (ASX: NUH) share price will be one to watch when it returns from its trading halt.
On Wednesday the hearing solutions company requested a trading halt whilst it conducted a bookbuild for a placement of ordinary shares to institutional, sophisticated, and professional investors.
Ahead of the placement the company provided a market update which revealed that a "large multinational consumer electronics company" launched a takeover approach in April.
According to the release, Nuheara received an indicative non-binding letter of intent to acquire the company by way of a scheme of arrangement for 8.4 cents per share. This is a ~53% premium to its last close price.
This proposal was subject to a number of conditions, including satisfactory completion of due diligence, Nuheara divesting all of its mining interests, a unanimous recommendation from the Nuheara Board, and entry into a mutually acceptable scheme implementation agreement.
After which, any scheme implementation agreement would also have been subject to a number of further conditions, including shareholder, court, and regulatory approvals.
However, unfortunately for shareholders, the proposal did not get to that stage and was withdrawn after Nuheara advised the suitor that it needed to conduct a capital raising and would be required to provide a cleansing notice which would disclose the letter of intent and its name.
According to the AFR, the company in question is global electronics giant Samsung.
It appears to have been impressed with Nuheara's technology and particularly its revolutionary wireless earbuds, IQbuds, which allow consumers to augment their hearing according to their personal hearing preferences and connect hands free with their voice-enabled smart devices.
Will Samsung return?
Management advised that there is no indication that the suitor or any other party will present an offer for the company in the future.
So for now, it will continue its focus on the development of its technology and products and pursuing its aspiration to be the global hearing leader by providing more functional, affordable and accessible hearable products.
