Thanks for the update, below is the text from the AFR...

Thanks for the update, below is the text from the AFR article:

Five months after wrapping up a pre-bid stake and putting Tyro Payments in play, Potentia Capital’s finally set for a look under the fintech’s bonnet.

Tyro and Potentia have had their bankers and lawyers negotiating what exactly due diligence should look for the past week, and talking about restrictions on Potentia’s consortium should it enter the data room.

Tyro Payments chief executive Jon Davey said the company’s first half had been “exceptionally strong”.

Both sides start this week happy that the issues were resolved, ending the stand-off and paving the way for due diligence to finally get underway.

It’s not a moment too soon for Tyro shareholders, who have little (yet) to show for the round of takeover talks. Potentia kicked off the saga in September, locking up Grok’s stake and making an indicative bid at $1.27 a share, only for Westpac Banking Corp to join the fray with a higher non-binding offer.

Westpac ran due diligence but couldn’t stand up its bid, while Potentia returned at $1.60 and was rejected for a second time.

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However, with Grok and other investors still pushing the board to engage, Tyro offered Potentia due diligence on January 26 to see whether it could help spark a “significantly improved proposal”. It’s taken the 10-days or so since for the offer to be taken up.

Now that access to the data room has been sorted, the question is at what sort of price Tyro’s board (and shareholders) would willing to sell.

Street Talk still thinks the magic number is about $1.85 a share. The stock last traded at $1.62.

Morgan Stanley analysts put their two cents’ forward last week, telling clients Tyro was worth $1.60 or about four-times forecast gross profit on its base case basis. Its bull case has the stock at $2.50 a share, or five to six times gross profit.

Tyro and Potentia’s spokespeople declined to comment on Sunday.

Diligence should - hopefully – pave the way for Tyro shareholders to find out once and for all whether the company’s headed into private hands, or whether they have to back new boss Jon Davey’s turnaround as a public company.

Potentia’s consortium includes HarbourVest, CBus, Aware Super and MLC.