An increased takeover offer by US firm Henry Schein for NZX-listed Software of Excellence has a good chance of success, says ABN Amro Craigs research analyst Mark Lister.
Henry Schein yesterday raised its offer for the Auckland-based dental software company from $2.70 to $2.90 a share.
The offerremains conditional on 90 per cent acceptance - the threshold at which all remaining shares could be compulsorily purchased.
ABN Amro Craigs changed its recommendation to shareholders from hold to sell after the increased bid was announced.
Lister said it was a good offer "especially given the way markets have gone over the last month or so, there's no alternative offers out there, it's this or nothing and if this offer goes away shareholders are looking at a fairly hefty drop in share price."
Shares closed up XX yesterday at $XX, compared to $2.15 shortly before news of the offer.
"The fact that it's jumping up and it being quite close to the offer price, that's the market telling you that it sees this offer as one that has a good chance of success."
Henry Schein said it had acceptances totalling about 62 per cent - including 18.3 per cent from Co-Investor Capital Partners and related parties, plus 4.7 per cent from managing director Brian Weatherly - and reiterated it did not plan to keep any part of Software of Excellence publicly traded.
The raised offer was a 50 per cent premium on a 30-day volume weighted average before news of the takeover, the company said.
NZX-listed Software of Excellence generated about 85 per cent of its revenue from the UK and 15 per cent from New Zealand and Australia.
