MYOB fields takeover bid
Shares in accounting software company MYOB have soared after a takeover bid from New York-based private equity firm KKR.
The non-binding takeover bid offers $3.70 a share - a 24 per cent premium to MYOB's previous closing price of $2.98 per share.
Including MYOB's debt, the deal is valued at $2.6 billion.
Its approval is conditional on due diligence, obtaining debt finance and a unanimous recommendation by the MYOB board.
MYOB's share price jumped by 19 per cent after the announcement.
The MYOB board is assessing the proposal.
“The board received this proposal over the weekend and we wanted to provide an update to the market immediately,” MYOB CEO Tim Reed said.
The company says it will work with advisors to consider the terms of the non-binding offer and keep the market informed about any decisions.
“Our first commitment is, as always, 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 and we expect will continue to be with their remaining shareholding.
“While our board and advisors work through the next steps it is business as usual. We will continue to deliver on our strategy and to provide exceptional products and support for our clients and partners.”