Accounting software giant MYOB may be re-floated on the Australian Securities Exchange just two years after it was bought by private equity groups Archer Capital and American firm Harbour Vest, a new report has indicated.
The rumour comes amidst of flurry of activity in takeover and private equity deal speculation, with private equity firm Affinity Equity said to be eyeing smallgoods manufacturer Primo and a number of firms reportedly looking at buying a higher stake in the country’s second-largest ISP, iiNet.
According to the Australian Financial Review, Archer Capital and HarbourVest may be planning to put MYOB back on the ASX in the second-half of the year. The company’s management team presented at a Morgan Stanley conference earlier this month, and fund managers have reportedly been visiting the MYOB headquarters in Melbourne.
Archer and HarbourVest made a bid for MYOB back in 2008, originally offering $1.12 per share in a deal said to be worth around $430 million. This was rejected by the accounting software firm, but it eventually caved in a few months later.
At the time, analysts said the takeover offer represented the return of private equity in Australia. And certainly Archer Capital has been making several buys even in the past few months – it just bought the Quick Service Restaurant chains for $460 million, along with the Healthe Care hospital group for $240 million.
The report claims MYOB has been recording solid profit growth lately. It also notes about $100 million has been spent on new products which will launch this year, providing solid grounds for growth.
Meanwhile, a separate report from Reuters claims private equity groups Blackstone and Affinity Equity is looking at smallgoods manufacturer Primo.
Paul Lederer, who owns two thirds of the company, will hold onto a 50% share and is currently talking with several equity firms of the rest of his stake. Although Affinity is understood to be one of many buyers, the report claims it is specifically interested in the company.
The company is said to be making $100 million EBITDA with revenue of $1.4 billion. Primo’s supply connections with the supermarket giants is said to be a key part of the talks.
Finally, Amcom Telecommunications announced last week it sold 4.5 million iiNet shares, reducing its stake from 23% to 20%. IT also said it plans to demerge the leftover stake through a distribution to shareholders.
The AFR reports that Amcom may consider putting the shares to the market, leaving it open to a number of other telcos eager for growth ahead of the National Broadband Network including TPG, Optus and Vodafone.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
