13th Feb 2019 16:38
LONDON (Alliance News) - Tax Systems PLC said Wednesday that it has agreed a GBP100.6 million takeover offer from a unit of UK private equity firm Bowmark Capital LLP.
The compliance software developer has reached an agreement over a 110 pence per share cash offer by Stripes Bidco Ltd. The acquisition price represents a premium of around 9.5% to the closing price of 100.5p last Wednesday, the day before the announcement of the potential takeover.
Shares in Tax Systems closed 0.3% higher at 106.80p each on Wednesday.
Tax Systems Non-Executive Chairman Clive Carver said: "The offer from Bowmark represents a 64.2% return for investors who invested at the point of the reverse takeover, only two and a half years ago. The independent directors believe that Bowmark will be an excellent partner to Tax Systems and its management, and believe the acquisition is in the best interests of all our stakeholders, and unanimously recommend that shareholders vote in favour of the resolutions relating to the acquisition."
Last Thursday, Tax Systems confirmed "advanced" talks with Bowmark Capital over a potential takeover offer.
Tax Systems independent directors have unanimously recommended shareholders to vote in favour of the takeover
Stripes Bidco has received irrevocable undertakings Tax Systems shareholders to vote in favour of acquisition in respect 40.4 million shares, representing around 50.05% of the company's share capital.
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.
Related Shares:
TAX.L