Mad Paws Holdings (ASX:MPA) entered a scheme implementation deed to be acquired by Rover Group for AU$0.14 a share via a scheme of arrangement, according to a Tuesday filing with the Australian bourse.

The offer represents a premium of 87% to the closing price of the company's shares on July 17, the filing said.

The company's board, which holds a 14.5% stake, recommends that shareholders vote in favor of the scheme in the absence of a superior proposal and an independent expert's conclusion that it is in the best interests of shareholders, the company said.

The company's 14.5% stakeholder, Bombora Special Investments Growth Fund, confirmed its intention to support the scheme.

The company has advised shareholders not to take any action at this time.

Shares of the company rose 73% in recent Tuesday trade, their highest since early 2023.