The GBST Holdings Limited (ASX: GBT) share price has returned from its trading halt with a bang this morning.
At the time of writing the specialist financial technology company’s shares are up 16% to $3.60.
Why is the GBST share price on fire today?
This morning GBST shares returned from their trading halt following the release of an update on a couple of takeover approaches it has received this week.
Neither of these approaches are from Bravura Solutions Ltd (ASX: BVS), which appears to have dropped out of the race now.
According to the release, on Monday GBST received a non-binding indicative proposal from FNZ Group for $3.50 cash per share.
This was 25 cents per share higher than the non-binding indicative proposal of $3.25 cash per share it received from SS&C Technologies, Inc. over the weekend.
However, it hasn’t taken long for SS&C Technologies to return with an even better offer.
This morning the company revealed that the Nasdaq-listed provider of investment and financial services and software for the financial services and healthcare industries has increased its offer to $3.60 cash per share.
This values GBST at $244 million and is 44% higher than Bravura Solutions’ initial bid in April of $2.50 per share.
GBST’s chairman, Allan Brackin, said: “Having carefully assessed the merits of both proposals, the Board remains of the view that it is in the best interests of GBST and its shareholders to facilitate a binding offer from SS&C reflecting the terms of its revised proposal and which is capable of being presented to shareholders.”
The updated proposal remains conditional on several matters, including satisfactory completion of confirmatory due diligence and entering into mutually acceptable transaction documentation.
In light of this, the GBST board has continued to stress that there is no certainty that the updated proposal will result in an agreed transaction and advised shareholders to take no action at this stage.