Coast Capital to vote against Vista's bid for UK software firm Blue Prism (updated)

Banyan Gold

30/09/2021 20:31

(Adds Vista's response in paragraph 6)
    Sept 30 (Reuters) - Activist investor Coast Capital said on
Thursday it was planning to vote against U.S. private equity
firm Vista Equity Partners' 1.1 billion pound ($1.48 billion)
bid for U.K. automation software developer Blue Prism Group Plc
 PRSMB.L .
    Earlier this week, Blue Prism became the latest British
takeover target by a private equity firm, a trend driven by
cheap UK valuations following Brexit and the pandemic.
 urn:newsml:reuters.com:*:nL4N2QU1JA
    In a letter to the software firm's board, Coast Capital said
it would encourage other shareholders to reject Vista's 1,125
pence-per-share offer, saying the bid undervalues the
London-listed firm.
    "The proposed transaction leads shareholders to question the
board's clear conflict of interest in unanimously supporting a
transaction which values the company materially below consensus
valuation, 52-week high, and its average price since IPO...,"
Coast Capital, which owns about 3 million Blue Prism shares,
said in the letter.
    Blue Prism, whose customers include automaker Daimler
 DAIGn.DE , e-commerce firm eBay  EBAY.O  and Britain's NHS, had
said it plans to recommend that shareholders vote in favour of
the Vista bid, calling the terms "fair and reasonable".
    Vista declined to comment, while Blue Prism did not
immediately respond to a Reuters query.
    Shares of Blue Prism closed Thursday's session flat at 1,150
pence.
    
($1 = 0.7426 pounds)

 (Reporting by Aby Jose Koilparambil and Yadarisa Shabong in
Bengaluru; Editing by Shailesh Kuber)
 ((abyjose.koilparambil@thomsonreuters.com; +919986528692;))