MYOB BEING WOOED BY $2.2B BUY-OUT
ACCOUNTING software group MYOB says there is still “a lot of water to go under the bridge” before a proposed $2.2 billion buyout goes ahead.
The Australian technology heavyweight is being wooed by US private equity titan KKR & Co, which has lifted its stake to almost 20 per cent.
KKR, previously Kohlberg, Kravis, Roberts & Co, has snapped up almost 104 million of its shares – about 17.6 per cent of the group – to take its holding to 19.9 per cent.
It bought the shares from another US private equity house, Bain Capital, at $3.15 each and is now offering to buy the rest at $3.70 each.
The takeover offer values MYOB at $2.2 billion, or $2.6 billion including debt.
Shares in the group surged on the revelation – up 19.1 per cent in their biggest single-day gain since it rejoined the Australian share market more than three years ago to $3.55.
Chief executive Tim Reed said yesterday that the board had received the buyout bid on the weekend. “We’re working with our advisers to consider the terms ... and will keep the market informed as and when decisions are made,” he said.
The group’s commitment was to “deliver exceptional shareholder value and therefore to consider any reasonable proposal”, he said.