Bravura and Ironbridge Capital in advanced negotiations for scheme proposal.
Basis of a proposed price of $1-73 per Bravura share.
I'm not very impressed!
Hrmm. IronBridge are MBO specialists. Lets hope that the directors of BVA are doing their best for ALL shareholders and are not using this as an opportunity to restore their own shareholding in the group after the Lift debacle.
BVA is engaged in discussions with private equity group Ironbridge Capital that may lead to a bid at an indicative $1.73.
The stock is in suspension after Directors’ shares became caught up in the failure of Lift Capital, another equity business that allegedly borrowed funds using clients’ stock as collateral. Principal funder of Lift, Merrill Lynch, has declared a 31% holding in BVA.
We are surprised at the price, which represents a relatively small premium to the prevailing – in our opinion – depressed share price.
We think there is a high probability a competing bid will emerge, which we believe needs to be at least $2.00 to succeed
Computershare is rumoured to be interested and would be a logical buyer.
If the directors have in fact lost their stock this unfortunate situation could weaken the Board’s resolve. Nor would we expect Merrill’s to put up much of a fight.
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