ReadyTech rejects unsolicited Total Specific Solutions bid

Software provider ReadyTech (ASX:RDY) knocked back an unsolicited takeover bid from Total Specific Solutions, labelling the offer as unexecutable and one that fundamentally undervalues the company.

ReadyTech responded to initial media speculation published in The Australian Financial Review by confirming it had received an unsolicited, non-binding indicative proposal to acquire 100% of the business.

The complex, dual-structured offer proposed a scheme of arrangement for a cash consideration of $2.00 per share.

The offer included an alternative off-market takeover bid with a 50.1% minimum acceptance condition, priced at a lower cash consideration of $1.75 per share.

The ReadyTech board firmly rejected the dual-track proposal. In a statement, the board determined that the financial terms failed to reflect the inherent value of ReadyTech in a change-of-control context and concluded that the deal, as presented, would not be executable.

At this stage, ReadyTech leadership has advised shareholders that they do not need to take any action regarding the rejected offer.

The company has engaged corporate advisory firm Jefferies Australia to guide them as their financial advisor through the process.

At the time of reporting, ReadyTech’s share price was $1.54.