Kiwi website business, Trade Me looks like being snapped up by a UK private equity mob called Apax Partners.
The appearance of Apax saw the shares of Trade Me soar on both sides of the Tasman yesterday.
On the NZX they jumped 20%, or 97 cents, to $NZ6.07 after the offer was revealed. That’s the highest Trade Me’s shares have ever traded at.
On the ASX the shares rose 16.5% to $5.57.
The offer values Trade Me at $NZ2.5 billion – about $NZ500 million more than its sharemarket value when trading closed on Tuesday.
Apax has investments in the technology and telco industries, including French telco Orange, as well as services, healthcare, and consumer investments. The company is an investor in UK vehicle classifieds business Auto Trader and in a Dutch online retailer. It has interests in Europe, Asia, Israel, and India.
Trade Me said the $NZ6.40 a share offer from Apax was “a preliminary, non-binding, indicative proposal”. But analysts see few obstacles to the deal assuming it was finalised and there are no rival offers that outbid Apax.
“The Board of Trade Me, together with its advisers, has reviewed the indicative proposal and has decided to engage with Apax.
“Trade Me has provided Apax with due diligence access on an exclusive basis until 12 December to facilitate a binding offer. This exclusive access is subject to a “fiduciary carve out” that permits Trade Me to engage with third parties should it receive any unsolicited proposals.
“The Board of Trade Me notes that there is no certainty the indicative proposal will result in an offer or any other transaction for Trade Me.
“The Trade Me Board will update the market on any material developments.
“The Board advises shareholders that they do not need to take any action in relation to the indicative proposal and that they should not do so without assessing all available information and seeking their own professional advice,” Trade Me directors said yesterday.
