Australia's ReadyTech gets updated buyout offer with scrip alternative (updated)

Readytech Holdings

30/11/2022 24:06

(Adds details, background)
       Nov 30 (Reuters) - Australia's ReadyTech Holdings
 RDY.AX  said on Wednesday suitor Pacific Equity Partners (PEP)
had come up with an updated offer that allows its shareholders
to choose the A$4.50 per-share consideration in cash, shares or
a mix of both.
    Private equity firm PEP has also decided to drop its plan to
work with ReadyTech's largest shareholder Pemba Capital Partners
on the proposal, ReadyTech said.
    Earlier this month, PEP offered to buy ReadyTech for A$481.4
million ($308.3 million), highlighting heightened interest in
Australia's technology sector amid cheap valuations.
    The offer had received pushback from ReadyTech's
second-largest investor, Microequities Asset Management.
    ReadyTech said its independent board committee was in talks
with PEP regarding the terms of the new alternative, and advised
that it was in the interests of shareholders to continue to
engage with PEP on a non-exclusive basis.
    Shares of the software company rose as much as 3.5% in early
trading amid a weak broader market.  .AX 
 (Reporting by Himanshi Akhand in Bengaluru; Editing by Shailesh
Kuber and Subhranshu Sahu)
 ((Himanshi.Akhand@thomsonreuters.com;))