In this briefing:
1. MYOB (MYO AU): Head for the Exit
On 5 March 2019, Manikay Partners, an 11% shareholder, wrote to MYOB Group Ltd (MYO AU) chairman Justin Milne to reveal that it believed that KKR & Co Inc (KKR US)’s recommended offer of $3.40 cash per share was too low due to the significant market rally and normalisation of financing markets.
Manikay believes MYOB is worth well in excess of A$4.00 per share. Manikay intends to use the threat of a shareholder rejection to get KKR to sweeten its bid, in our view. However, we believe that KKR has little reason to increase its bid. With the shares just 1 cent below KKR’s revised proposal, we believe shareholders should cash out.
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