12th Mar 2019 14:32
LONDON (Alliance News) - Technology-focused investor MXC Capital Ltd said on Tuesday that in light of the increased cash offer for Tax Systems PLC by Stripes Bidco Ltd, MXC has waived its right over 2.5 million warrants it holds over shares in the compliance software provider.
Stripes Bidco, a unit of UK private equity firm Bowmark Capital, will pay MXC a waiver fee of GBP200,000.
As a result of the waiver, MXC will exercise 860,755 warrants it holds over shares in Tax Systems through a cashless exercise facility, conditional on the court sanctioning the scheme.
In addition, Weiss Asset Management has upped its stake in Tax Systems to 24.3% from 20.7%, in a transaction on Monday.
Earlier on Tuesday, Stripes Bidco increased the acquisition price for Tax Systems to 115 pence per share, valuing Tax Systems at GBP102.3 million.
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.
Shares in MXC Capital were up 1.0% at 69.70 pence on Tuesday, while Tax Systems shares were untraded at 110p.