KKR nudges up bid for Aus­tralia’s MYOB

Viet Nam News - - MARKETS -

SYD­NEY — Aus­tralia’s MYOB Group said it will grant due dili­gence to KKR & Co af­ter the US buy­out gi­ant sweet­ened its of­fer to take full con­trol of the ac­count­ing soft­ware provider firm to A$1.8 bil­lion (US$1.3 bil­lion).

KKR, which owns 19.9 per cent of MYOB, lifted its bid for the rest of the shares by 2 per cent to A$3.77 per share, valu­ing the com­pany at A$2.2 bil­lion.

If suc­cess­ful, the deal would be one of KKR’s big­gest ac­qui­si­tions in Aus­tralia and add to its 10-strong sta­ble of tech­nol­ogy busi­nesses in the Asia-Pa­cific re­gion.

“My read of is they have raised the of­fer price to gain ac­cess to do due dili­gence, so that in­di­cates a step forward,” said Jules Cooper, an an­a­lyst at stock­bro­ker Ord Min­nett.

“The price is cer­tainly above our val­u­a­tion to­day,” he said, adding that he thought MYOB was worth A$3.28 per share.

Mel­bourne-based MYOB, which at the time of KKR’s first bid last month only said it was as­sess­ing the of­fer, saw its shares surge 6 per cent to a two-week high of A$3.52 yes­ter­day. That, how­ever, re­mains 7 per cent be­low the bid price, sug­gest­ing in­vestors are wary that a deal may not be sealed.

Al­though MYOB was once the dom­i­nant provider of ac­count­ing soft­ware to small and medi­um­sized busi­nesses in Aus­tralia, it has in re­cent years strug­gled to com­pete for mar­ket share with cloud­based ad­min­is­tra­tive soft­ware com­pany Xero Ltd.

Xero, based in Welling­ton, New Zealand, has a mar­ket value of A$5.8 bil­lion. It has over­seas of­fices, in­clud­ing those in London, San Francisco and Den­ver, while MYOB op­er­ates only in Aus­tralia and New Zealand.

KKR said at the time of its first bid that it wanted a unan­i­mous rec­om­men­da­tion from MYOB’s board to close the deal. — REUTERS

Trad­ing in­for­ma­tion for KKR Co is dis­played on a screen on the floor of the New York Stock Ex­change in New York, US. — Photo break­ingnews.com

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