12th Mar 2019 13:01
LONDON (Alliance News) - Tax Systems PLC said on Tuesday that UK private equity firm Bowmark Capital has increased its acquisition price for the compliance software developer to GBP102.3 million.
In mid-February, Tax Systems and Bowmark unit Stripes Bidco Ltd reached an agreement over a 110 pence per share cash offer, valuing the company at GBP100 million.
Now the price has been increased to 115 pence per share, valuing Tax Systems at GBP102.3 million. The price represents a premium of 14% to the closing price of 100.5 pence on February 6, the day before the announcement of the takeover.
Shares in Tax Systems were untraded on Tuesday, last quoted at 109.38 pence, to which the acquisition price reflects a 5.1% premium.
Stripes Bidco has so far received irrevocable undertakings from Tax Systems shareholders to vote in favour of the acquisitions in respect of 61.4 million shares, representing around 71% of the company's share capital.
The acquisition is conditional on shareholders and court approval, with a court meeting and general meeting to take place on Friday.
Tax Systems said it recommends that shareholders vote in favour of the offer.
Bowmark is a London-based private equity firm focused on UK firms valued at up to GBP200 million. It manages funds totalling GBP1.5 billion, and focuses on a wide range of industries.