BVS - Bravura Solutions

[steve fleming]

From MergerMarket:
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[FONT='Verdana','sans-serif']Fisher Funds, a 12.7% shareholder in Bravura, believes Bravura is worth far more than the AUD 1.73 offered by Ironbridge, a source close to the New Zealand fund manager said. He argued that a valuation of around AUD 2.20 would be closer to the mark based on market growth projections, potential upgrades, good management and Bravura’s strong market position.

Ironbridge Capital has offered Bravura directors Iain Dunstan and Simon Woodfull shares, along with cash, in a special purpose vehicle. The deal is conditional on the two executives establishing ownership of a combined stake in Bravura of almost 31% of the company.

Other Bravura shareholders will receive AUD 1.73 in cash for each share held.
A source close to Ironbridge said that Dunstan and Woodfull would be excluded for voting at the shareholder's scheme meeting and, given the 75% approval required, the threshold would be hard to reach should Fisher vote against the deal. There will be two scheme meetings; one for shareholders excluding the two directors or their nominees, another meeting for the directors or their nominees. Option holders can vote at the shareholder meeting if they exercise their right to convert their options to shares.
Fisher has an influential position, the source close to Fisher noted.

As the leading institutional shareholder, Fisher is speaking to other shareholders. “It is not perceived as an attractive price,” the source said, adding that if Fisher's view of the company's value proves correct then other bidders may well emerge. “It is early days still.”
As this is effectively a privatisation, the source argued, it is not a practical option for all shareholders to be offered an equity component. Fisher is thus arguing about value rather than pushing for an equity component. [/FONT]

[David Hardman]

BVA spiked 18% yesterday on reasonable volume. Significant move for this stock.

Can only think this is on the back of some Lift Capital news?

Still trading well under T/O price.

[Footsie]

still a few days left... im still expecting a profit downgrade

and deal to fall over

[steve fleming]

BVA spiked 18% yesterday on reasonable volume. Significant move for this stock.

Can only think this is on the back of some Lift Capital news?

Still trading well under T/O price.

Yep, good call.

Revised deal terms agreed to between Mcgrath Nicol/Lift/ Directors and ML and looks like it will all go ahead now, in a more simple form, at $1.73.

[Footsie]

you are forgetting that yuo need shareholder approval

fishers may not sell

[David Hardman]

a partial takeover could suffice, for Fishers won't control the board.

Announcement just out.

They did not get close to the 23m required by Iron Bridge.. They expect 19-20m EBITDA

Does that make it another downgrade?

They sounds hopeful the deal will still go through.

[macduffy]

$18.6m EBITDA so they didn't quite make the revised ( downward) figure.
Revenue up strongly but profit slashed heavily, a classic case of profitless growth. Will be interesting to see if Ironbridge are still interested and if so, at what price?

[_Michael]

Hard to know what to make of this. Putting the takeover aside for one minute and looking at the business with market cap around $117m.

Growth appears to be there and customer relationships intact but when will the costs be scaled back, and the margins open up?

If they can work some discipline into pricing their project work and consultant expenses etc the company could turn out to be cheap 24 months down the line.

Are IronBridge allowed to build stake on market? If so they would be getting in at half the agreed price so the EBITDA shortfall may not be as major.

[macduffy]

I see that Ironbridge have now formally withdrawn from discussions.
Stand by to await a revised proposal, at a substantially lower indicative price.

[Jaa]

Anyone know what today's trading halt is about?

Debt issue? Takeover? Acquisition?