KKR’s bid for MYOB expecting independent expert’s green light

MYOB chief executive Tim Reed. Picture: Supplied

The independent expert’s report into the takeover of MYOB by Kohlberg Kravis Roberts is expected to be released on Wednesday and will offer the stamp of approval to the $2 billion bid by the private equity fund.

Sources had said that the report was expected to be released midweek and was expected to rule that the bid is fair and reasonable.

It comes after hedge fund Manikay Partners amassed an 11 per cent stake in the business in the hope of derailing the current offer by KKR.

The New York-based hedge fund, which is run by an Australian, has argued that KKR needs to put more money on the table for the bid to succeed given that the stock has rallied since its offer was put forward late last year.

However, sources close to the accounting software provider have argued that MYOB and its adviser UBS, have scanned the buyer universe far and wide to find another suitor prepared to pay a higher price, and those attempts had been unsuccessful.

The company had an agreement to the offer, subject to a better offer emerging by February 22.

In October, MYOB announced KKR had secured a stake of 19.9 per cent in MYOB and to be successful in its attempts to derail its bid, the thinking is that Manikay needs to secure about 17 per cent or 18 per cent.

MYOB’s shares were trading at $3.35 in late afternoon trade after touching $2.90 in December.

KKR reduced its offered $3.40 per share after earlier offering $3.77 after share prices fell among technology stocks.