Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<li>Cloud-Based solutions provider <strong><a href="https://www.smartkarma.com/entities/elmo-software-ltd" target="_blank" data-smartkarma-citation="entities:24342:1" rel="noopener">Elmo Software (ELO AU)</a></strong> has confirmed it has received multiple expressions of interest from various parties, including Accel-KKR.</li>
<li>No agreement has been reached with any parties, no pricing mentioned, nor whether data room access has been afforded.</li>
<li>Earlier this year ELMO held discussions with Accel-KKR in regard to a change of control proposal at $6.10/share. That figure is a stretch in this market. </li>
</ul>


Cloud-Based solutions provider Elmo Software (ELO AU) has confirmed it has received multiple expressions of interest from various parties, including Accel-KKR.
No agreement has been reached with any parties, no pricing mentioned, nor whether data room access has been afforded.
Earlier this year ELMO held discussions with Accel-KKR in regard to a change of control proposal at $6.10/share. That figure is a stretch in this market. 


ELMO Software (ELO AU): KKR Returns To The Well

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<li>Online auto parts and service provider <strong><a href="https://www.smartkarma.com/entities/infomedia-ltd" target="_blank" data-smartkarma-citation="entities:11385:1" rel="noopener">Infomedia Ltd (IFM AU)</a></strong> has received a third non-binding proposal; this time from U.S.-based software company Solera Holdings. </li>
<li>The Offer price is A$1.70/share, in line with TA Associates-led consortium's bid, but below Battery Ventures' A$1.75/share offer.</li>
<li>As with TA and Battery, Solera has been granted limited due diligence. TA holds a 19.4% stake.</li>
</ul>


Online auto parts and service provider Infomedia Ltd (IFM AU) has received a third non-binding proposal; this time from U.S.-based software company Solera Holdings. 
The Offer price is A$1.70/share, in line with TA Associates-led consortium's bid, but below Battery Ventures' A$1.75/share offer.
As with TA and Battery, Solera has been granted limited due diligence. TA holds a 19.4% stake.


<ul>
<li>Online auto parts and service provider <strong><a href="https://www.smartkarma.com/entities/infomedia-ltd" target="_blank" data-smartkarma-citation="entities:11385:1" rel="noopener">Infomedia Ltd (IFM AU)</a></strong> has received a second non-binding proposal  - by way of a Scheme - this one from PE outfit Battery Ventures. </li>
<li>The Offer price is A$1.75/share, a 36.7% premium to last close, and a A$0.05/share premium to TA/Viburnum's proposal earlier this month. </li>
<li>As with TA, Battery has been granted limited due diligence. With a 19.4% stake, TA remains very much in the driver's seat.</li>
</ul>


Online auto parts and service provider Infomedia Ltd (IFM AU) has received a second non-binding proposal  - by way of a Scheme - this one from PE outfit Battery Ventures. 
The Offer price is A$1.75/share, a 36.7% premium to last close, and a A$0.05/share premium to TA/Viburnum's proposal earlier this month. 
As with TA, Battery has been granted limited due diligence. With a 19.4% stake, TA remains very much in the driver's seat.


Infomedia (IFM AU): Battery Ventures Sneaks In Above TA's Proposal

<ul>
<li>Online auto parts and service provider <strong><a href="https://www.smartkarma.com/entities/infomedia-ltd" target="_blank" data-smartkarma-citation="entities:11385:1" rel="noopener">Infomedia Ltd (IFM AU)</a></strong> has received a non-binding proposal  - by way of a Scheme - from TA Associates and Viburnum Funds. </li>
<li>The Offer price is A$1.70/share, a 32.8% premium to last close. </li>
<li>Via a tie-in with Viburnum, TA disclosed a 14.46% interest.  IFM said it is also in preliminary discussions with other interested parties. </li>
</ul>


Online auto parts and service provider Infomedia Ltd (IFM AU) has received a non-binding proposal  - by way of a Scheme - from TA Associates and Viburnum Funds. 
The Offer price is A$1.70/share, a 32.8% premium to last close. 
Via a tie-in with Viburnum, TA disclosed a 14.46% interest.  IFM said it is also in preliminary discussions with other interested parties. 


Infomedia (IFM AU): TA Associates/Viburnum Funds Proposal

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<p>On the 12 October,  <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02292481-2A1255763?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> a conditional, non-binding indicative proposal from a consortium comprising PEP and the Carlyle Group, by way of a Scheme. The indicative cash price was A$5.20/share, a 30% premium to last close. Perpetual, holding 9.65% of shares out, said it would vote for a firm Offer of $5.20/share and above.</p>
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<div>On the 23 October, Link <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02297758-2A1258281?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">said</a> the proposal from PEP/Carlyle "<em>materially undervalued the company</em>". </div>
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<div>Three days later PEP/Carlyle <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02298663-2A1258716?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">tabled</a> a A$5.40/share non-binding indicative Offer, in cash. The proposal includes an option of a cash offer for Link ex-Property Exchange Australia (PEXA) of A$3.80/share, along with the ability to take an indirect interest in PEXA. Shareholders with <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02298654-2A1258715?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">14.62%</a> of shares out stated their intention to vote in favour of PEP/Carlyle's latest proposal, in the absence of a superior offer.</div>
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<p>PEP/Carlyle said it required six weeks of due diligence, and if DD access was not provided by the 28 October, they would walk. Link <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02300645-2A1259592?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">responded</a> that the proposal was not compelling - but gave the consortium DD access nonetheless.</p>
<h3>The New News</h3>
<p>Software provider <a href="https://www.smartkarma.com/entities/ss-c-technologies-holdings" target="_blank" data-smartkarma-citation="entities:3464:1" rel="noopener">Ss&amp;C Technologies (SSNC US)</a> has now pitched a non-binding indicative proposal, by way of Scheme, at A$5.65/share, 4.6% above PEP/Carlyle's proposal.</p>
<p>Conditions to this proposal largely mirror that of PEP/Carlyle's: confirmatory DD, obtaining debt financing, FIRB (and ACCC). And no further dividends.</p>
<p>Less than six weeks ago, Link's board said a $5.40/share Offer did not represent compelling value for Link. It is difficult to believe an offer 4.6% higher will change that view.</p>
<p>More below the fold.</p>
</div>


On the 12 October,  Link Administration Holdings (LNK AU) announced a conditional, non-binding indicative proposal from a consortium comprising PEP and the Carlyle Group, by way of a Scheme. The indicative cash price was A$5.20/share, a 30% premium to last close. Perpetual, holding 9.65% of shares out, said it would vote for a firm Offer of $5.20/share and above.


On the 23 October, Link said the proposal from PEP/Carlyle "materially undervalued the company". 

Three days later PEP/Carlyle tabled a A$5.40/share non-binding indicative Offer, in cash. The proposal includes an option of a cash offer for Link ex-Property Exchange Australia (PEXA) of A$3.80/share, along with the ability to take an indirect interest in PEXA. Shareholders with 14.62% of shares out stated their intention to vote in favour of PEP/Carlyle's latest proposal, in the absence of a superior offer.



PEP/Carlyle said it required six weeks of due diligence, and if DD access was not provided by the 28 October, they would walk. Link responded that the proposal was not compelling - but gave the consortium DD access nonetheless.
The New News
Software provider Ss&amp;C Technologies (SSNC US) has now pitched a non-binding indicative proposal, by way of Scheme, at A$5.65/share, 4.6% above PEP/Carlyle's proposal.
Conditions to this proposal largely mirror that of PEP/Carlyle's: confirmatory DD, obtaining debt financing, FIRB (and ACCC). And no further dividends.
Less than six weeks ago, Link's board said a $5.40/share Offer did not represent compelling value for Link. It is difficult to believe an offer 4.6% higher will change that view.
More below the fold.


Link Admin (LNK AU): SS&C Trumps PEP/Carlyle

Australia

GBST Holdings Limited provides transactions technology solutions for the financial services industry in the Asia Pacific region. The Company's products include GBST Advisor, an interactive client management system that automates and centralizes the client management process.

GBST Holdings (GBT AU)

ELMO Software (ELO AU): KKR Returns To The Well

This is not a firm Offer, and the recent IFM situation, involving three potential Offerors, is illustrative of the pitfalls for non-binding Offers...

David Blennerhassett

Infomedia (IFM AU): Now A Three-Way Hunt

None of the Offers are firm. Yet, IFM is currently subject to a three-way bidding war. and it would be a logical bolt-on to Solaera's exiting...

David Blennerhassett

Infomedia (IFM AU): Battery Ventures Sneaks In Above TA's Proposal

Neither Offers from TA and Battery are firm. However, with a 19.4% stake, TA is very much in the prime position. I'd be a buyer here at A$1.72/share.

David Blennerhassett

Infomedia (IFM AU): TA Associates/Viburnum Funds Proposal

Assuming five months to complete, paying up to $1.60/share is around 15% annualised. But I think this may trade tighter to the indicative terms.

David Blennerhassett

Link Admin (LNK AU): SS&C Trumps PEP/Carlyle

This remains a non-binding situation, albeit a competitive one. I'd play the spread, and pay at SS&C Technologie's terms.

David Blennerhassett