Monday, 08 October 2018 10:05

KKR makes $1.75b offer for MYOB

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KKR makes $1.75b offer for MYOB Pixabay

American equity firm Kohlberg Kravis Roberts has made an offer to buy the shares it does not already own in online business management solutions company MYOB at $3.70 per share, MYOB has said in an announcement to the ASX on Monday.

The offer was a premium of 24% on the closing price of $2.98 on Friday, MYOB said in the statement. This would mean that KKR would pay about $1.75 billion for the company if its proposal was accepted.

MYOB said its board was examining the offer made by KKR.

It said an affiliate of KKR had bought 17.6% of its shares which had been held by Bain Capital Abacus Holdings, raising to 19.9% the interest held by KKR in MYOB.

Bain now holds 6.1% of the shares in MYOB, the statement added.

MYOB chief executive Tim Reed said: "The board received this proposal over the weekend and we wanted to provide an update to the market immediately.

"We're working with our advisers to consider the terms of the non-binding offer and will keep the market informed as and when decisions are made.

"Our first commitment is, as always, to deliver exceptional shareholder value and therefore to consider any reasonable proposal.

"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 advisers 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."

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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