Shares in Hansen Technologies were sold off heavily in ASX trading on Monday following the departure of private equity group BGH Capital from the bidding lounge.
The shares fell 15% to $5.25 at one stage after BGH abandoned its $6.50 a share offer revealed on a non-binding basis in June, and closed the day down more than 9% at $5.60.
BGH withdrew its unsolicited offer after examining Hansen’s accounts and coming to the conclusion it does not want to pay $1.3 billion for the Melbourne-based software company.
“Having conducted extensive due diligence inquiries in relation to the company, BGH has not notified Hansen of any issue which Hansen considers material in the context of Hansen’s current operations and strategy,” the ASX-listed company told the market on Monday.
“BGH Capital has advised the company that it continues to see Hansen as a highly effective organisation with an outstanding management team and strong prospects.”
Chairman David Trude said Hansen reported record results across all areas in 2020-21 and it is still expecting to reach revenue of $500 million in 2024-25.
Hansen shares were trading around $5.20 before the offer was made in June and then jumped by about $1. Shares closed at $6.17 on Friday.
The withdrawal of the offer will be seen a negative because BGH’s decision is a rejection of the company and its accounts and technologies.
Hansen said on Monday afternoon that management will host an investor call at 10.30am on Tuesday, no doubt to try and allay concerns raised by BGH’s surprise withdrawal.
