(Reuters) – Hansen Technologies on Monday received a conditional and non-binding buyout proposal from private equity firm BGH Capital in a deal that values the billing solutions provider at A$1.3 billion ($1 billion), sending its shares to a record high.
BGH’s offer of A$6.50 in cash per share represents a premium of 25.5% to the company’s last closing price. Hansen’s board backed the pitch and said it had granted the private equity firm exclusivity for six weeks and due diligence access.
The company said Chief Executive Officer Andrew Hansen had separately struck a deal with BGH to vote his 17.5% stake in favour of a formal bid from the private equity firm during the exclusivity period.
Hansen said its board of directors, which includes David Osborne and Bruce Adams holding a 17.5% stake each, also intends to recommend the proposal to shareholders.
Analysts at RBC Capital Markets wrote that the support of CEO Hansen and major shareholders Osborne and Adams suggests that the transaction has a high chance of completion.
The acquisition price implies a 23-times multiple of fiscal 2022 price-to-earnings ratio by RBC estimates, which appears reasonably full and attractive to shareholders, the analysts wrote.
Shares in Hansen jumped 23% to A$6.370 by 0119 GMT, against a 0.2% decline on the broader index, and have gained nearly 40% so far this year.
($1 = 1.2923 Australian dollars)
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