Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site.

Is This The End Of MYOB Group Ltd (ASX:MYO) As We Know It?

MYOB Group Ltd (ASX:MYO) released the Scheme Booklet for the takeover by Kohlberg Kravis Roberts & Co. L.P (KKR) and the deal looks likely to go ahead.

Today, MYOB Group Ltd (ASX: MYO) released the Scheme Booklet for the proposed acquisition by Kohlberg Kravis Roberts & Co. L.P (KKR) after gaining approval from the Federal Court of Australia for convening a meeting of MYOB shareholders to vote on 17 April 2019.

The offer from KKR to buy MYOB is an all-cash offer of $3.40 to acquire the remaining shares in MYOB it does not currently own. KKR currently own around ~19.9% and are seeking to acquire the remaining ~80%.

Independent Expert Report

MYOB engaged Grant Samuel as its independent expert, and they have concluded the scheme is fair and reasonable in the absence of a superior proposal. Grant Samuel assessed the value of MYOB shares as being between $3.19 to $3.69 a share, indicating that value within this range is reasonable.

The independent expert report said, “Grant Samuel has concluded that the KKR proposal is fair and reasonable and in the best interests of MYOB shareholders”.

Will There Be a Superior Proposal?

Given MYOB’s ‘go shop’ period concluded on 22 February, MYOB had 60 days to solicit a superior proposal and none were received. It seems unlikely that a superior proposal would emerge now.

How Likely Is The Takeover?

Given the directors of MYOB have recommended it and there is a break fee of $20 million to be paid to KKR if the deal doesn’t go ahead, to me it seems the directors are confident it will go ahead and the deal will receive the required votes and court approval. Let’s not forget Xero Ltd (ASX: XRO) and Intuit Inc (NASDAQ: INTU) are breathing down MYOB’s neck.

Is It Time To Sell?

Excluding a superior offer, it seems unlikely for the MYOB share price to trade any higher than the offer price of $3.40. The offer of $3.40 per share assumes that no full year 2018 dividend will be paid as it needs the written consent of KKR to do, which is unlikely to be granted.

If shares can be sold for around the offer price on-market, it could be a good time to sell and deploy funds into better opportunities with more potential upside.

[ls_content_block id=”14945″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content