Financial technology business Bravura Solutions Ltd (ASX: BVS) has launched a new takeover offer for GBST Holdings Limited
(ASX: GBT).
GBST is a technology business that provides services for leading capital market, broking, banking, financial services and wealth management brands. It was founded in 1984 and now claims to be the market leader in Australia and New Zealand. It also operates in Asia, the UK and North America.
What Happened?
Bravura has come back with another takeover offer two months after the previous approach.
The previous offer was for $2.50 per GBST share and now Bravura is offering $2.72 per share, an 8.8% increase from the first offer.
The two companies have still been talking to each other since the update on 3 May 2019 with a management presentation by GBST to Bravura and a follow-up Q&A session with the GBST Chief Financial Officer.
The above due diligence helped Bravura better understand and confirm some key assumptions underpinning the idea of acquiring GBST and the potential synergies of combining the two businesses. Based on that, the Bravura Board are supportive and approve of the increased offer.
Bravura has said that GBST can pay a special dividend of up to $0.35 which would reduce the takeover offer by the same amount, due to the $0.15 of franking credits that are currently available.
The revised takeover offer is a 49% premium to the average share price between the release of GBST’s half year result and the day before the first takeover bid. So that seems like a solid offer.
The other improvement of the offer is that it’s an all-cash offer, not a combined cash and share offer.
Time to Sell?
With the GBST share price now very close to the offer price it seems there isn’t much benefit of holding unless an even bigger takeover offer were to come along. If I were a shareholder I’d be happy to sell today and move on to something else.
Two ideas could be the exciting growth shares in the free report
below which are expanding rapidly.
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