Finzsoft shareholder Rubik to consider takeover

Finzsoft shareholder Rubik to consider Holliday, Silverlake takeover

By Paul McBeth

Dec. 18 (BusinessDesk) - Finzsoft Solutions shareholder Rubik Financial will consider a $3 per share takeover offer by the New Zealand software developer's chief executive Andrew Holliday and Singaporean tech firm Silverlake Axis, once it has more information.

ASX-listed Rubik, which provides software for the financial services sector, owns 19.4 percent of Finzsoft, meaning it can block a full takeover by Holliday and Silverlake's vehicle, Silverlake HGH. If Rubik accepted the offer, which is a 40 percent discount to the current trading price, it would reap A$4.7 million, more than four times the A$1.1 million value it ascribed the stake as at June 30.

"Rubik Financial Ltd will make a decision on the appropriate action once all relevant information is made available," the company said in a statement to the ASX. "Rubik notes that Finzsoft's last traded p[rice is NZ$5 and that it has recently traded above NZ$6."

The shares sank 15 percent to $5 today, having soared 1867 percent after signing its biggest ever contract which would underpin strong earnings growth.

Finzsoft chairman Brent Impey said Silverlake HGH is expected to make the offer next year, and the board will update shareholders on the process as it becomes aware of new moves.

The proposed offer comes after the Finzsoft hired PwC for a strategic review of its capital and ownership structure in October, during which Silverlake was identified as a strategic partner in the Asia-Pacific region, Impey said. In September last year Holliday built up a majority stake of some 66 percent when he made a takeover bid for the company.

Earlier this month Finzsoft said it was considering paying its first interim dividend in four years after its first-half turned to a profit of $2.02 million in the six months ended Sept. 30, compared to a loss of $63,000 a year earlier.

Shares of Rubik rose 5.3 percent to 20 Australian cents.

(BusinessDesk)

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