ReadyTech (ASX:RDY) share price zooms up 28% on takeover offer

November 01, 2022 12:27 PM AEDT | By Sonal Goyal

Details of the proposal received

According to ASX announcement, ReadyTech has got a non-binding, conditional indicative proposal from PEP to acquire ReadyTech for AU$4.50 per share. PEP is an Australian private equity firm.

ReadyTech said that the proposal is subject to multiple conditions such as completion of negotiation, due diligence, execution of transaction documents, approval from the investment committee, regulators, and other customary conditions precedent.

The company also shared that the proposal plans that the PEP gets relief from the Australian Securities and Investments Commission (AISC) to allow it to work with Pemba regarding the takeover offer. ReadyTech highlighted in the announcement that

Currently, funds managed by Pemba Capital Partners Pty Ltd have a 32.01% holding in the issued share capital of ReadyTech.

The software and services company has appointed Corrs Chambers Westgarth as its legal advisers and Jefferies (Australia) Pty Limited as its financial advisers.

What’s next?

To assess the proposal, the company has created an independent board committee. The committee, with the benefit of advice from legal and financial advisers, has provided non-exclusive access to PEP to non-public due diligence information, so that it can come up with a more certain proposal.

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