MYOB revealed today that it had received an unsolicited proposal from US private equity firm KKR, which is seeking to acquire the shares of the accounting software company that it doesn’t already own.
Bain Capital has sold MYOB shares representing 17.6 per cent of the company to KKR. Bain Capital acquired MYOB in 2011 for $1.2 billion from Archer Capital. The software company returned to the ASX in 2015.
In total KKR currently holds shares representing a 19.9 per cent stake in MYOB. Bain Capital has retained shares equivalent to 6.1 per cent.
KKR is offering A$3.15 per share.
“The MYOB Board has commenced an assessment of the Proposal and will keep the market informed in accordance with its continuous disclosure requirements,” a statement released by MYOB said.
“The Board is committed to acting in the best interests of all shareholders. MYOB shareholders do not need to take any action in relation to the Proposal at this stage. There is no certainty that the Proposal will result in a transaction.”
UBS has been appointed financial adviser and Clayton Utz legal adviser.
In May, MYOB cancelled its plan to acquire Reckon’s Accountant Group Assets. MYOB said that the $180 million deal was called off due the length of time it had taken to receive regulatory approval.
For the six months to 30 June MYOB announced a profit of $25.3 million, down almost 11 per cent on the prior comparable period. Revenue was up 7.1 per cent to $218.5 million.
KKR last year made an indicative and non-binding proposal to acquire 100 per cent of telecommunications provider Vocus. However, neither KKR nor Affinity Equity Partners, which was also looking at acquiring Vocus, were able to come up with terms that were acceptable to the telco’s board.