OneVue shares surge as Iress ups takeover offer price

Alex Waislitz is holding firm to his view Iress undervalues the listed fintech, as its share price jumps 7 per cent.

Andrew Walsh, CEO of financial market software company Iress, which on Monday upped its bid for OneVue. Picture: Renee Nowytarger

Billionaire investor Alex Waislitz is holding firm on his view that Iress is undervaluing listed fintech OneVue, in which he holds a more than 18 per cent stake, despite the suitor putting a sweetened offer on the table less than two weeks out from the scheme meeting.

Mr Waislitz is understood to have topped up his stake in OneVue today and in the coming days will write to all shareholders urging them not to accept the deal.

The $1.9bn Iress increased its OneVue bid to a “best and final” all-cash offer of 43c per share on Monday, up from the original 40c per share it offered in early June.

The original bid prompted hefty criticism from Mr Waislitz who last week said he would vote down the deal as it undervalued the company.

Following the higher bid, sources said Mr Waislitz still believes the new offer significantly undervalues OneVue and will be voting “no” at the upcoming scheme meeting.

OneVue shares surged more than 7 per cent on the sweetened offer, before closing up 4.6 per cent on Monday at 41c each.

Speaking to The Australian, Iress chief executive Andrew Walsh said he increased the bid for OneVue following discussions with shareholders in recent weeks.

“We’ve been noting comments from the register, and we note the public comments that have been made. So in response we have moved to the top of the independent expert’s range and we think this is the best chance of the scheme getting success from here,” Mr Walsh told The Australian.

“We don’t know whether it will pass, of course, that will be subject to how shareholders vote. Those that have voted have voted handsomely in support of the scheme.

“If the scheme is not to proceed, then it would certainly be disappointing for OneVue shareholders, in our view, and we would expect the value of the business, in a stand-alone sense, to be less than the offer price that we’ve made, specifically the earlier offer price,” he said.

Mr Walsh declined to comment on his discussions with specific shareholders, including Mr Waislitz.

Earlier this month, independent advisory firm Grant Thornton Corporate Finance valued OneVue at between 36c and 43c per share and declared the original offer fair and reasonable.

Mr Waislitz holds an 18.25 per cent stake in OneVue through his private Thorney Group and his listed Thorney Opportunities and Thorney Technology companies.

Morningstar analyst Gareth James said he was surprised Iress had lifted its bid given Mr Waislitz’s bargaining position appeared to be “extremely weak”.

“ (Waislitz) has built up a material stake in OneVue and there aren’t any other bids on the table. So if this transaction doesn’t occur, OneVue’s share price will be significantly lower. If Iress just says to him, look, we’re giving you no more, what’s he going to do? He runs the risk of the offer getting rejected and then he could be sitting on huge losses, because the share price will probably collapse.”

Mr James said Mr Waislitz and his Thorney companies appeared to be the only obstacles to the deal.

“If you think about where OneVue’s share price was, I’d be very surprised if it doesn’t get approved by shareholders,” he added.

The original 40c per share offer put forward by Iress on June 1 represented a 67 per cent premium to OneVue’s closing share price on May 28, the last trading day prior to the bid. The new offer price, meanwhile, represents a 79 per cent premium to the May 28 price of 24c per share.

OneVue’s board has unanimously recommended that shareholders vote in favour of the takeover deal. The scheme meeting will be held on October 9.