MYOB changes tack on takeover

Agreement reached for restructuring of initially rejected takeover offer from Manhattan Software

ASX-listed business software firm, MYOB (ASX: MYO), has done an about face and agreed with Manhattan Software on a basis for the restructuring of the suitor’s takeover offer for all outstanding shares.

According to MYOB, who rejected Manhattan’s initial advances, the restructured offer sees the headline price improved, the majority of conditions removed and greater flexibility provided to MYOB shareholders.

Under the restructured offer MYOB will pay a special fully franked dividend of $0.0815 cents per share, representing value equivalent to $0.1164 cents per share grossed up for franking credits, with the record date being the earlier of 30 days after the offer becomes unconditional or January 27, 2009, with payment as soon as practicable thereafter.

Subject to Manhattan’s minimum acceptance condition of 50.1 per cent being satisfied, shareholders who accept Manhattan’s offer will receive value of $1.0564 per share.

If Manhattan receives acceptances of at least 50.1 per cent, it will establish an institutional acceptance facility (IAF 90 per cent) under which all shareholders can lodge acceptance instructions. If acceptances received by Manhattan total 90 per cent or more of shares on issue, MYOB shareholders will receive $1.1564 per share.

In the absence of a higher offer, MYOB’s directors unanimously recommended shareholders lodge acceptance instructions into the 90 per cent IAF, once established.

MYOB chairman, Simon McKeon, said the board is pleased to have agreed on an improvement to the bid structure, which now allows shareholders to gain a higher price for their shares without risking being forced into accepting a lower price.

“We encourage shareholders to think carefully about the options presented to them. Whilst the board is not recommending accepting the lower bid, the board notes that the offer will not proceed unless 50.1 per cent acceptances are received prior to 18 December, either directly or into the existing acceptance facility,” Mckeon said in a statement.

“The board is unanimous in its recommendation that shareholders lodge acceptance instructions into the 90 per cent IAF, once established. Furthermore, all board shareholders have indicated they intend to accept into the 90 per cent acceptance facility, in the absence of a higher offer.”

MYOB CEO Tim Reed was unavailable for comment at the time of publication.

Join the newsletter!

Or

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

Brand Post

Imou: At home with security

Modern living is all about functionality and security for everybody from the very young to the very old. With Imou anybody can enjoy smart life – the solution is at their fingertips.

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?