KKR takeover of MYOB greenlit by shareholders
Written on the 17 April 2019 by Business News Australia
Shareholders have approved the takeover of business software company MYOB (ASX: MYO), giving Kohlberg Kravis Roberts & Co (KKR) the green light.
The takeover was on shaky ground for the last month as major shareholder Manikay Partners attempted to buy up enough shares to block the vote.
The vote was passed by 73.89 per cent of shareholders who voted, representing 82.59 per cent of votes cast.
If the takeover is approved by the courts, MYOB shareholders will be entitled to receive $3.40 cash per each MYOB share held.
MYOB chairman Justin Milne (pictured) says the vote confirms the strength of the deal offered by KKR.
"The board today welcomes the decision by MYOB shareholders to support the board's recommendation that the scheme of arrangement should proceed," says Milne.
"While there are still several steps to take before the scheme is complete, today's outcome demonstrates that shareholders agree with the board that the scheme is in their best interests."
"MYOB is a great Australian company and the board has every confidence that it will continue to thrive under the care of its new owners."
The next court date for approval of the takeover is on 24 April, and if all goes to plan the takeover will be implemented on 8 May.
Manikay had been vocal about its disapproval of the $2.2 billion takeover offer from KKR. The firm believed that MYOB had been undervalued by KKR and that MYOB was best suited to continue independently, without the control of KKR.
In 2018, MYOB announced it will no longer pursue the acquisition of Rekon to instead focus on its planned investment strategy.
Citing significant delays, the result of extensive regulatory requirements, MYOB announced in May that it would terminate the acquisition of Reckon's Accountant Group assets.
MYOB said the sale and purchase agreement stipulated a six-month period prior to completion, within which certain conditions had to be satisfied.
Business News Australia
Author: Business News Australia