KKR launches $1.2 bn offer for Australian firm MYOB
SYDNEY: KKR & Co has launched a A$1.75 billion ($1.2 billion) takeover offer for MYOB Group after buying almost a fifth of the Australian accounting software provider, as the US private equity firm grows its portfolio of tech businesses.
The MYOB bid, if successful, would become one of KKR’S biggest acquisitions in Australia and add to its 10-strong stable of technology-driven businesses in the Asia-pacific region. KKR last year raised $9.3 billion — a regional record — in its third Asia-focused buyout fund.
MYOB disclosed the proposal in a statement and said its board was studying the non-binding offer, which was conditional on KKR obtaining financing for the deal and getting a unanimous recommendation from the target’s directors.
A spokeswoman for KKR confirmed the A$3.7 per share offer for the remaining 80.1 per cent of the company, and declined to comment further. The offer price, a premium of 24 per cent to MYOB’S last closing price, values it at A$2.18 billion.
In building its stake, KKR paid A$327 million to buy 17 per cent of MYOB from its biggest shareholder, an affiliate of private equity firm Bain Capital, leaving the affiliate with a 6.1 per cent stake, MYOB said.
MYOB shares soared by over a fifth to A$3.6, their highest intraday price in almost nine months, after news of the unsolicited offer.