a revised offer from equifax wins over vedas board 2377742015
Veda’s board and Perpetual, its biggest shareholder, both welcome the new offer.
Shares in data analytics company Veda Group Ltd (ASX:VED) jumped 1.51 per cent on Tuesday (October 6) after its board gave support for an improved, AU$2.5 billion bid from Equifax Inc. (NYSE:EFX).
Equifax sweetened its initial cash offer of AU$2.70 to AU$2.825 per share, and the new bid got the green signal too from Perpetual, which is Veda’s largest shareholder and owns a stake of 10.7 per cent.
The Veda board unanimously approved the revised offer, which resulted in a gain of US$75 million (AU$105 million) for the company’s shareholders. The offer is 18.1 times Veda’s EBITDA (earnings before interest, tax, depreciation and amortization) for FY2015, and at a premium of 42 per cent to Veda’s closing price as on September 17.
Veda Chairman, Dr. Helen Nugent AO said: “Veda has a strong market position, as the leading provider of credit information, data and analytics services in Australia and New Zealand and with operations across Asia and the Middle East. The Board of Directors considers the Revised Proposal reflects Veda’s outstanding market position and represents a strong financial outcome for our shareholders.”
Perpetual head of equities Paul Skamvougeras said the new proposal was a fair price, and that Veda’s board was right to accept it.
Veda’s decision clears the way for Equifax to conduct a due diligence of the company during an exclusivity period.
"After receiving the first offer we sought advice on the valuation and then went back into negotiations with Equifax who were very constructive," said Dr. Nugent to the AFR. "An enterprise value to EBITDA ratio of 18.1 times is significantly higher than the highest comparable transaction". She will clear $565,000 for her shares, according to the AFR.
The deal will give Equifax, which is a global data solutions and analytics company, ready access to the credit information and analysis market in Australia and New Zealand.
