The Bravura Solutions Ltd (ASX: BVS) share price will be on watch this morning after the provider of software and services to the wealth management and funds administration industries announced yet another increase to its non-binding indicative proposal to acquire GBST Holdings Limited (ASX: GBT).
What offer has been made?
In April Bravura Solutions offered $2.50 per share to acquire GBST, before increasing its offer to $2.72 per share last week.
This morning the company lifted its offer to $3.00 per share and confirmed to the GBST board that, in the absence of a superior proposal from any third party, it does not intend to increase its offer again.
In addition to this, GBST does not have long to decide on this offer. Bravura Solutions advised that it is concerned at the ongoing delay and uncertainty, and will withdraw the proposal unless a process deed is executed prior to 4pm on Friday June 28.
GBST response.
This morning the GBST board revealed that following the receipt of Bravura Solutions' offer last week, it was approached by a number of other parties also expressing interest in GBST and its businesses.
In light of this, it has determined that it is in the best interests of GBST shareholders to conduct a confidential formal process with respect to its strategic options, including the potential to provide a period of exclusive due diligence access.
The release explains that key criteria of this formal process were communicated to Bravura Solution and other interested parties on Wednesday, with interested parties invited to submit non-binding indicative proposals by 4.15pm on Wednesday July 3.
As part of the proposal the company requires details including an offer price, the amount of any exclusivity deposit fee, and a list of both confirmatory and commercially sensitive due diligence items.
It noted that Bravura Solutions' updated offer does not address a number of key elements outlined above, including a lack of an exclusivity deposit fee, which the GBST Board believes is critical. Especially given the provision of commercially sensitive information to a party who is considered to be a direct competitor of GBST.
In light of this, the GBST board have advised shareholders to take no action whilst they review the proposal.
