The Myob Group Ltd (ASX: MYO) share price rose 19% on Monday morning after the accounting business received a takeover offer from private equity company KKR & Co L.P.
Myob is one of Australia’s leading accounting software businesses. KKR & Co is a global investment bank that sometimes invests with private equity.
The takeover offer:
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According to the ASX release, KKR recently bought 17.6% of Myob from Bain Capital at $3.15 per share and now owns nearly 20% of the business.
KKR now wants to buy the entire Myob business. Therefore, it has offered a preliminary non-binding indication of interest at $3.70 per share in cash. This is a 24% premium to the Myob closing share price of $2.98 last Friday.
Despite the Bain sell down, Bain Capital still owns almost 36 million Myob shares, which represents just over 6% of the company.
The Myob Board has started to assess the proposal and will inform the market of any further developments. To help the process Myob has hired UBS is its financial adviser and Clayton Utz as legal adviser.
Myob said that there are a number of conditions attached to the proposal by KKR including completion of satisfactory due diligence, obtaining debt finance on acceptable terms, the unanimous recommendation of the Myob Board of Directors, shareholder & court approvals, customary exclusivity and no material adverse changes.
Myob told the market that its profit fell by 10% to $25.3 million in its recent report. The Xero Limited (ASX: XRO) share price is down nearly 1% at lunch, perhaps in response to the takeover news.
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