Bigtincan suitor SQN Investors unhappy with potential capital raising (updated)

Bigtincan Holdings

08/12/2022 04:41

(Updates with comments from SQN letter, context)
       Dec 8 (Reuters) - Australia's Bigtincan Holdings Ltd
 BTH.AX  said on Thursday top shareholder and suitor SQN
Investors (SQN) had expressed its disagreement over a potential
capital raising, calling it "highly dilutive" and
"value-destructive".
    Last week, the software provider received a buyout bid from
private equity adviser SQN, valuing it at A$441.9 million
($296.74 million). Bigtincan, however, did not immediately back
the bid in view of talks with other interested parties.
    "We urge you to not pursue any capital raise or do any
acquisitions at this time," SQN said in its letter to Bigtincan,
referring to a media report that the Sydney-based company's
shares were on a trading halt pending a A$30 million placement. 
    "We would urge you to instead honour your fiduciary
obligations and engage with the various parties that have
approached you about a control transaction, including SQN
Investors."
    SQN, which holds a 13.6% stake in Bigtincan, also expressed
concerns the potential capital raise "would imply a reliance on
further acquisitions" to achieve fiscal 2023 annualised
recurring revenue guidance of between A$137 million and A$143
million.
    In its response to the letter, Bigtincan confirmed its
guidance and said it would make an announcement once the
placement was completed.    
     ($1 = 1.4908 Australian dollars)
 (Reporting by Roushni Nair in Bengaluru; Editing by Christian
Schmollinger and Subhranshu Sahu)
 ((Roushni.Nair@thomsonreuters.com;))