As eluded too, in previous post, the positive vibe around NXL is going to flood the Financial media sector.Here is another article, from the AFR, speculating about a possible takeover and other potentail suitors:
Nuix poison pill problem solved, keeps RBC at close call
7/02/2023 1:36:00 PM
Bombed-out investigative software group Nuix Ltd turned an important corner on Tuesday - and we wonder whether it could also help revive suitor interest. Financial ReviewBombed-out investigative software group Nuix Ltd turned an important corner on Tuesday - and we wonder whether it could also help revive suitor interest.Bombed-out investigative software group Nuix Ltd turned an important corner on Tuesday - and we wonder whether it could also help revive suitor interest.While Nuix still has its challenges - not least of all risk of class actions - former CEO Eddie Sheehy’s highly material $183 million legal claim is no longer one of them.to save article Share Nuix will not have to pay Eddie Sheehy $183 million after a five-year battle with the former chief executive who claimed he was entitled to a stock split that would have allowed him to cash out during the company’s billion-dollar IPO in 2020.RBA statement on the cash rate increase Reserve Bank of Australia policy statement Share post Here is the RBA February 7 policy meeting statement: At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.RBA statement on the cash rate increase Reserve Bank of Australia policy statement Share post Here is the RBA February 7 policy meeting statement: At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.Nuix attracted interest from US software group Reveal late last year, with a proposal that would’be left contingent liabilities with the group’s shareholders.iStock The claim hung over Nuix for five years, and was one of a number of issues that has dogged the company since listing in December 2020.Further, Justice Halley said that even if that decision hadn’t been made, Mr Sheehy could have only exercised his options if there was a “sale of business” before 2010.It also hung over Nuix’s takeover prospects, with suitors known to kicked tyres and baulked at the prospect of legal bills and/or other reparations.25 per cent.Most recently, Nuix had US software electronic discovery and investigations software group Reveal sniffing around last September, only for the conversations to fall flat.“I’m otherwise persuaded there’s been no breach of that agreement because there’s been no sale of the business of Nuix,” Justice Halley told the court.Advertisement Barrenjoey-advised Reveal wanted to buy Nuix’s assets out of the listed entity, and leave contingent liabilities (including the potential Sheehy claim) with the company and its investors.It is, however, moderating in response to lower energy prices, the resolution of supply-chain problems and the tightening of monetary policy.While that structure may have appealed to the suitor, it certainty didn’t for the target or its biggest shareholder Macquarie Group.” Advertisement Mr Sheehy, who left Nuix at the beginning of 2017, has been in a battle with the technology company over 453,273 options which he argued should have emerged as 22.It will be some time, though, before inflation is back to target rates.With the case gone (subject to appeals and the like), Reveal’s expected to take another look.Nuix now looks significantly cleaner, with potential suitors more able to focus on things like its software’s dominant market position and blue-chip customer base.Shares in Nuix went into a trading halt ahead of the highly anticipating Federal Court decision on Tuesday.There’s also been significant activity in the sector offshore: TSX-listed digital investigations group Magnet Forensics entered into a definitive bid with Thoma Bravo (Nearmap’s suitor) only a fortnight ago.8 per cent, the highest since 1990.Bankers on board The easiest way in for any Nuix suitor would be to stitch up a deal with its biggest shareholder, Macquarie, which retained a 30.Mr Sheehy received the open-ended options in 2008 as part of his remuneration package.In underlying terms, inflation was 6.14 per cent stake at the float.Macquarie’s there via Macquarie Capital and as a former owner, rather than via a small caps portfolio manager inside Macquarie Asset Management.Fall from grace Mr Sheehy fell out with Nuix’s then-chairman Dr Castagna in 2016, after he urged Dr Castagna to step down from the board while he faced charges of tax fraud.Global factors explain much of this high inflation, but strong domestic demand is adding to the inflationary pressures in a number of areas of the economy.Advertisement Nuix’s board, some of who were there when its shares were trading north of $11 soon after listing, would be able to read the tea leaves.It is understood to have RBC Capital Markets’ bankers keeping an eye over the company’s shoulder.Advertisement When Mr Sheehy left Nuix in January 2017, the company was undergoing a restructuring and had a plan to split each share 50 times ahead of an expected billion-dollar IPO.Nuix shares were up 43.Medium-term inflation expectations remain well anchored, and it is important that this remains the case.Medium-term inflation expectations remain well anchored, and it is important that this remains the case.7 per cent to $1.31, jumped above $11 in January,.30 on Tuesday.However, despite the jump, it is trading a long way from its IPO price and at a $412 million market capitalisation.The recovery in spending on services following the lifting of COVID restrictions has largely run its course and the tighter financial conditions will constrain spending more broadly.As for suitors, Reveal’s the most logical given its tyrekicking, while Thoma Bravo is clearly hot to trot.The challenge would be closing the big gap between Nuix’s share price performance and a bid’s premium - the same problem that killed approaches at other tech plays last year including Infomedia and EML Payments.The unemployment rate has been steady at around 3½ per cent over recent months, the lowest rate since 1974
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