Tyro’s board knocks back private equity takeover offer

The board of payments and business banking group, Tyro Payments, has rejected an unsolicited takeover offer from a consortium of private equity investors led by Potentia Capital Management.

In addition to Potentia, the consortium includes HarbourVest Partners, MLC Investments and industry super fund Cbus.

The consortium wants to acquire 100 per cent of Tyro’s issued share capital. Its shareholders can receive their consideration in the form of 100 per cent cash; 50 per cent cash and 50 per cent scrip; or 100 per cent scrip in a privatised Tyro.

The board says it has considered the offer with help from its financial and legal advisers and has unanimously decided that the offer of 1.27 a share significantly undervalues Tyro and as such, is not in the best interest of shareholders.

The board describes the offer as “highly opportunistic” and says it is substantially below where Tyro’s share price has traded in the past 12 months.

In a statement to the ASXC, the board says Tyro has attractive growth prospects as it continues to take share in the Australian payments and business banking markets. It expects to achieve strong and improving operating leverage in the medium term and is well funded and capitalised to support its growth ambitions.

Meanwhile, Potentia advised Tyro that it had made a deal with Cannon-Brookes Head Trust (Grok) in relation to its 12.5 per cent shareholding in Tyro. Grok will accept a takeover bid made by Potentia or vote in favour of a scheme of arrangement proposed by Potentia at the offer price, subject to certain conditions.