KKR BID ADDS UP TO SHARE HIKE
A C C O U N T I N G s o f t w a r e 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 known as 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 was floated more than three years ago – to $ 3.55.
MYOB, an acronym of Mind Your Own Business, joined the Australian share market in May 2015.
Chief executive Tim Reed said the board had received the buyout bid over 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”, Mr Reed said.
“There is a lot of water to go under the bridge between this proposal and any potential resulting transaction.
“Early indications are that in KKR we have gained a supportive and interested shareholder who is confident in the company’s strategy and people, as Bain were.”