The Myob Group Ltd (ASX: MYO) share price is down more than 10% after KKR decided to reduce its takeover offer price by 10%.
Myob is currently facing a potential takeover from private equity business KRR. Myob is an accounting software business for small and medium businesses operating predominately in Australia. Myob is transitioning its clients to cloud-based accounts.
Why Myob shares are down 10%
Two and a half months ago KKR lobbed an unsolicited, indicative and non-binding proposal to acquire all of Myob for $3.77 per share through a ‘scheme of arrangement’.
But, after completing its due diligence and finalising its debt funding, KKR reduced the offer by 10% to $3.40 per share.
So will the takeover go ahead at that price?
It seems not. In response, Myob said in its ASX announcement: “The Board has informed KKR that it is not in a position to recommend the Revised Proposal however remains in discussions with KKR regarding its proposal.”
Myob said it will announce any further developments, but shareholders don’t need to take any action. Whatever happens, Myob will need to work hard to combat the challenge of Xero Limited (ASX: XRO).
The Myob share price is now trading at around the pre-offer price, but it’s a little over 10% lower than KKR’s current offer. However, that does suggest a maximum upside of $0.40 per share so it might be better to look elsewhere for investment opportunities such as the shares in the below free report.
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