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Online business management solution MYOB (ASX: MYO) has commenced the process of selling to global investment firms KKR & Co (KKR).
KKR has made a proposal to MYOB to acquire all the shares it currently doesn't already own by way of a scheme of arrangement.
The scheme follows this morning's announcement that KKR has acquired 103,951,106 shares from Bain Capital Abacus Holdings (Bain Capital).
KKR's purchase of Bain's holdings in MYOB represents approximately 17.6 per cent of the issued share capital in MYOB.
The global investment firm now holds an aggregate economic interest in MYOB of 19.9 per cent.
Following the sell down, Bain Capital has a remaining holding of 6.1 per cent of the issued share capital in MYOB.
KKR's proposal is stated to be a preliminary, non-binding indication of interest. The price of $3.70 cash per share represents a premium of 24 per cent to the closing share price of $2.98 per share on 5 October 2018.
The proposal is subject to a number of conditions including due diligence, debt financing, the unanimous recommendation of the MYOB's board of directors, as well as other obligations on MYOB's behalf.
MYOB has commenced an assessment of the proposal and will notify the market of its decision regarding KKR's proposal.
"The board is committed to acting in the best interests of all shareholders," says MYOB.
"MYOB shareholders do not need to take any action in relation to the proposal at this stage. There is no certainty that the proposal will result in a transaction."
Clayton Utz has been appointed as a legal advisor and UBS as a financial advisor for MYOB during the process.
Earlier in 2018, MYOB announced it will no longer pursue the acquisition of Rekon to instead focus on its planned investment strategy.
Citing significant delays, the result of extensive regulatory requirements, MYOB announced in May that it would terminate the acquisition of Reckon's Accountant Group assets.
MYOB said the sale and purchase agreement stipulated a six month period prior to completion, within which certain conditions had to be satisfied.
As the conditions were not met and the parties could not agree on terms, MYOB decided to not continue with the planned acquisition of Reckon.
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Business News Australia
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