MYOB says no to Manhattan takeover

Board says it is in talks with a number of other suitors that may result in a more lucrative offer

MYOB (ASX: MYO) has recommended its shareholders reject the conditional takeover offer from Manhattan Software Bidco.

Manhattan Software announced its intention to acquire all outstanding MYOB shares on October 30 at $1.15 cash per share, touting it as an “attractive” offer that “provides the certainty of cash consideration in an uncertain economic environment”.

MYOB has released a statement saying the Manhattan bid is “inadequate and undervalues MYOB’s existing business and future prospects”.

MYOB chairman, Simon McKeon, claimed Manhattan was seeking to take advantage of the unprecedented volatility in global markets by acquiring MYOB through a highly conditional offer without paying fair value to shareholders.

“The offer represents an unusually skinny premium and is low relative to comparable trading multiples,” he said.

“You only get to sell your shares once, and shareholders deserve to get an appropriate value for their company.”

According to MYOB, accountant and auditor firm, Lonergan Edwards, valued MYOB shares in the range of $1.16 to $1.29 per share, and found Manhattan’s offer “neither fair nor reasonable” to shareholders.

MYOB has undergone a streamlining of business operations this year, most recently rejigging its US operations and pulling out of mainland China after failing to cement as strong a marketplace as it has in other south-east Asian markets.

The company said the combined effect of the restructuring was put at $6.2 million on its 2008 pro-forma adjusted EBITDA.

“The strength of the business and our confidence in its future has enabled the Board to return 37 cents per share in capital returns and dividend payments to shareholders in 2008 alone,” McKeon said.

“MYOB is a resilient business that has continued to grow both profit and cash flow despite the recent downturn in business confidence. We are projecting EBITDA growth of not less than 10 per cent for 2009 and have every confidence for the company’s future growth beyond this.”

MYOB said its board and management are in discussions with a number of other suitors that may result in a more lucrative offer to MYOB shareholders.

Sealing a deal with Manhattan has not been totally ruled out, however, with discussions between the two parties being held.

Should those negotiations fail or an alternative, superior offer isn’t found, the board claimed shareholders will get the best value by hanging onto their shares.

MYOB’s directors, who hold an aggregate 29 percent of the issued capital of MYOB, will reject the Manhattan offer.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Manhattan Software BidcoMYOB

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?