Thursday 18th December 2014
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Andrew Holliday, managing director of Finzsoft Solutions, intends to make a discounted takeover bid for the financial software developer in partnership with Silverlake Axis, the Bermuda based IT company.
Bidco, the company formed out of Holliday and Silverlake's lock up agreement, intends to make a formal takeover offer to Finzsoft investors at $3 a share, a 48 percent discount to the recent trading price of $5.77. Chairman Brent Impey said Bidco is expected to make the offer next year, and the board will update shareholders on the process as it becomes aware.
The proposed offer comes after the Finzsoft hired PwC for a strategic review of its capital and ownership structure in October, during which Silverlake was identified as a strategic partner in the Asia-Pacific region, Impey said. In September last year Holliday built up a majority stake of some 66 percent when he made a takeover bid for the company.
Silverlake is a Singaporean tech business, listed on the Singapore stock exchange where the stock has gained 37 percent year to date, to last trade at S$1.20. The company lifted its annual profit 27 percent to 248 million Malaysian ringgit in the year ended June 30, on a 26 percent lift in sales to 500.7 million ringgit, according to its annual report.
Earlier this month Finzsoft said it was considering paying its first interim dividend in four years after its first half turned to a profit of $2.02 million in the six months ended Sept. 30, compared to a loss of $63,000 a year earlier.
In October the software firm signed its biggest ever contract with St George Bank to integrate the auto and equipment finance businesses of Capital Finance Australia which it said would underpin the previous profit guidance. Australia now accounts for about 59 percent of the firm's revenue.
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