MYOB Group Limited’s [ASX:MYO] share price jumped nearly 20% in trading yesterday, after announcing a $2.6 billion takeover bid.
Shares of the accounting software group are currently trading at $3.55 — its highest price since late January.
Details of the takeover offer
Yesterday morning MYOB announced an unsolicited, non-binding takeover bid from New York-based private equity firm KKR & Co.
The proposal is to acquire all of the remaining MYOB shares that KKR does not already own — after recently purchasing 17.6% of its share capital from investment firm Bain Capital — for the price of $3.70 per share. Representing a 24% premium to their closing price on 5 October prior to the surge.
What to expect
MYOB has said that they have commenced assessment of the offer and that they are committed to acting in the best interest of shareholders. Although there is no certainty that the proposal will result in a transaction.
MYOB CEO Tim Reed said in a statement to ABC:
‘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 advisors 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.’
MYOB have advised shareholders to not take any action in relation to the proposal at this point in time.
For Money Morning
PS: You’ll find over 2,000 stocks listed on the ASX and on any given day a bunch will rise, just like Sydney Airport. It’s near impossible to monitor these on your own. Our analyst Sam Volkering has picked out four Aussie stocks he believes could be top performers in 2018. Check out his free report ‘The Four Best ASX Stocks for 2018’ today.