MYOB buyout offer far too low: shareholder
ACCOUNTING software maker MYOB’s $2 billion buyout has run into turbulence as a prominent shareholder pushes the company to seek out a better deal.
US hedge fund Manikay Partners said it was not convinced the $3.40-a-share bid for MYOB pitched by private equity giant Kohlberg Kravis Roberts (KKR) offered full value. Manikay has increased its stake in MYOB to 9.99 per cent. The hedge fund, run by former Australian Securities Exchange director Shane Finemore, has called on the MYOB board to reconsider its recommendation to accept KKR’s offer.
“We were disappointed when KKR made its original offer and expected the board would be able to negotiate a higher price that would reflect the true value of the company,” Manikay said in a letter to MYOB’s management.
“KKR took advantage of the temporary adverse market conditions in late 2018 to pressure the board to accept a deal at $3.40 per share, a material reduction from the original $3.77 per share offer.
“Our valuation of the company, which we are happy to discuss with the board and with our fellow shareholders, is well in excess $4 a share.”
Manikay’s intervention throws a last-minute spanner in the works for MYOB’s management, which approved KKR’s reduced $3.40 a share offer in December.
Last month, MYOB, chaired by former ABC chair Justin Milne, said it had been unable to find a superior offer.
MYOB yesterday said it was sticking with its recommendation and that it had done everything it could to secure a better offer.
MYOB shareholders will vote on the merger on April 17.
MYOB has lost ground to cloud-based accounting software firm Xero in the past couple of years. MYOB shares fell 0.3 per cent yesterday to $3.39.