The board of Australian accounting software company MYOB has told its shareholders to resist the temptation to accept an approximately $477 million takeover offer from Manhattan Software Bidco.
The board released a statement late yesterday afternoon advising shareholders to do nothing until the board had had time to fully assess the offer. "This appears to be an opportunistic attempt to acquire MYOB at a time of global economic uncertainty and share market volatility," said MYOB chairman Simon McKeon.
Manhattan Software Bidco, the parent of which was registered last week in tax haven the Cayman Islands, claims institutional investors such as Guinness Peat Group, Colonial First State Global Asset Managemen, and Schroders Investment Management have already expressed interest in the bid.
McKeon said that despite the turmoil in financial markets, MYOB's balance sheet, recurring revenues and cash-flows had the company in good stead. The company will be returning within the range of 24 to 37 cents per share in dividends this year.
"The board will provide its recommendation in due course," said MYOB. "In the meantime shareholders should take no action in respect to the offer by Manhattan Software."