A private equity company is poised to snap up financial software maker MYOB, after boosting its bid price.
MYOB's board says it has agreed a restructured offer with Manhattan under which the the "headline price has been improved, the majority of conditions have been removed and greater flexibility has been provided to MYOB shareholders"
"Subject to Manhattan’s minimum acceptance condition of 50.1% being satisfied, shareholders who accept Manhattan’s offer will receive value of A$1.0564 per share. This comprises A$0.94 cash per share and the fully franked special dividend of A8.15 cents per share, representing value equivalent to A11.64 cents per share grossed up for franking credits," a statement to investors says.
However, if acceptances received by Manhattan and an institutional acceptance facility (IAF) total 90% or more of MYOB shares, shareholders will receive value of A$1.1564 per share.
The directors of MYOB unanimously recommended that shareholders lodge acceptance instructions with respect to their shareholdings into the 90% IAF, once established.
“The Board is pleased that we have been able to agree an improvement to the bid structure, which now allows shareholders to gain a higher price for their shares without risking being forced into accepting the lower price," Simon McKeon, chairman of MYOB, said.