The GBST Holdings Limited (ASX: GBT) share price has risen another 14% in reaction to a revised takeover bid.
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.
The New GBST Offer
After a lot of interest from Bravura Solutions Ltd (ASX: BVS) it seems to be that different bidders could be in the front seat.
One offer that GBST has received is a non binding indicative proposal at a cash price of $3.50 per share from Kiwi Holdco CayCo as the group holding company of the FNZ Group.
GBST has also received a non binding indicative proposal of $3.60 via a scheme of arrangement from SS&C Technologies Inc (NASDAQ: SSNC).
The takeover price is a 82.3% premium to the undisturbed closing share price of $1.975 for GBST shares on 11 April 2019.
GBST Chairman Mr Allan Brackin said: “Having carefully assessed the merits of both proposals, the Board remains of the view that it is in the best interests of GBST and its shareholders to facilitate a binding offer from SS&C reflecting the terms of its revised proposal and which is capable of being presented to shareholders.”
The $3.60 offer price per share values GBST at around $244 million. SS&C has also said it would be comfortable with GBST paying a fully franked special dividend of up to $0.35 per share to unlock up to $0.15 per share of franking credits.
This proposal is still conditional on several factors including confirmatory due diligence. But the GBST Board intends recommend the offer if everything goes to plan.
SS&C now has a period of three weeks of exclusive due diligence.
This is exciting for GBST shareholders, but I wouldn’t want to buy shares now with the current share price so close to the takeover price.
However, I would consider the rapid ASX growth shares in the free report
below instead for their exciting potential.
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