when is offer out, page-35

From the Australian this morning:

Tensions mount as Tyro-Potentia negotiations drag on

As negotiations drag out between Tyro Payments and its suitor Potentia Capital, the latest suggestion in the market is that the private equity firm is poised to offer a price in the range of $1.75-$1.80 a share.

While Tyro, which provides Eftpos payment terminals for its customers, told the market this week it had not received any proposal since December 11, the situation is becoming increasingly tense, as shareholders pressure the board to take the offer in front of it.

Sources say an offer of $1.75-$1.80 may not be enough to gain the board’s blessing, and Potentia is unlikely to make a firm bid until it has confidence it would be backed by the board.

The talk now is that an offer may arrive early next week.

Tyro shares closed on Tuesday at $1.44, with its market value at $741m, which indicates shareholders are not convinced a buyout will go through.

Larger investors in the group, such as Regal Funds with 7 per cent and the Mike Cannon-Brookes-backed Grok Ventures with 12.5 per cent, are two parties likely to react strongly should another offer be knocked back.

There are even threats in the background of an extraordinary general meeting being called should a deal not be supported to oust the board.

It’s now been weeks since Potentia concluded due diligence on the target. Potentia’s last offer at $1.60 a share was rejected by Tyro’s board.

Shares were trading as high as $1.67 earlier in the year.

An offer around $1.75 a share would value the business at close to $1bn.

Potentia is advised by Jarden Australia and Tyro is advised by Barrenjoey.