As expected, US credit reporter, Equifax upped its offer for local credit group, Veda (VED) and won support from the company’s board.
Equifax lifted its bid from $2.70 a share to $2.825.
Veda shares edged up 1.5% to $2.69, indicating the deal is done, subject to further investigation by the US group.
The new deal values Veda at $2.5 billion, or a rich 18.1 times Veda’s earnings before interest, tax, depreciation and amortisation for the year ended June 30, 2015.
Veda’s board has now agreed to give Equifax exclusive rights to conduct due diligence in the coming weeks.
VED 1Y – Veda backs improved offer
Veda chair Helen Nugent said the revised offer "reflect’s Veda’s outstanding market position and represents a strong financial outcome for our shareholders".
Equifax is one of the biggest credit reporting agencies in the world with a market capitalisation of $US11.7 billion.
Veda is Australia’s largest credit reporting agency. Equifax will gain a valuable market position in Australasia as a result of the bid.
Since the $2.70-a-share takeover offer on September 18, Veda’s shares jumped from less than $2 to the close yesterday, boosting its value from $1.6 billion to around $2.5 billion at the new offer price.
