Trade Me Group Ltd’s share price has surged today by over 2%.
Trade Me is New Zealand’s most popular auction platform — listing everything from property to cars to pets. Trade Me currently has a stock value of $6.14. It has a market capitalisation of $2.44 billion.
Why the increase for Trade Me?
Last week, Trade Me received a $2.5 billion takeover offer from British private-equity firm Apax Partners, which made a proposal of $6.40 per share.
However, since then, the stakes have gone up. Rumours are now circulating that American private-equity firm Hellman & Friedman is currently considering a bid for Trade Me.
This would put Hellman & Friedman in direct competition with Apax.
This possibility of a bidding war has uplifted market sentiments for Trade Me.
What’s next for [NZX:TME] shares?
Apax has until 12 December to settle on a final bidding offer.
However, if Hellman & Friedman does decide to toss their hat into the ring, we could see an active struggle emerge between the two private-equity firms.
As investors hold their breaths and await news, we anticipate a buoyant trajectory for Trade Me shares.
Editor, Money Morning NZ
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