SLI Systems to delist from stock exchange

SLI Systems will end its five-and-ahalf years on the stock exchange when new owner ESW Holdings delists the retail search engine software developer on Thursday.

Texas-based ESW crossed the 90 per cent threshold needed to mop up the remaining shares on December 19, successfully taking over the Kiwi firm, according to NZX filings.

ESW offered 65 cents a share, or $41.4 million, to buy the firm in October, having already locked up 51 per cent from 18 of SLI’s 1500-odd shareholders. The Texan company currently holds 95.9 per cent.

SLI’s shares will be suspended from trading on the NZX on January 8, and two days later the stock will delist at the close of trading.

The company will hold in trust any outstanding payments for shareholders who haven’t completed a transfer by January 18.

“To ensure that they are paid as soon as possible, SLI encourages shareholders and option-holders who have not accepted ESW’s offer to promptly return the transfer form to ESW,” chair Greg Cross said in a statement.

The offer was a substantial premium to the 30 cents the stock was trading at before ESW made its bid and more than the 37-to-53 cents a share valuation range put on the software firm by Northington Partners. SLI shares ended 2018 at 64 cents, having started the year at just 20 cents.

Austin, Texas-based ESW buys and grows software companies, targeting firms with an enterprise value of between US$10m and US$250m.

It has said it plans to invest in SLI’s global business to ensure long-term viability, new product innovation and using its existing top-tier retail relationships to expand the business.