The managing director of Finzsoft Solutions, Andrew Holliday, says he will make a discounted takeover bid for the financial software developer in partnership with Bermuda IT company Silverlake Axis.
Bidco, the company formed through Holliday and Silverlake's agreement, intends making a formal takeover offer to Finzsoft investors at $3 ashare, a 48 per cent discount on Wednesday's closing price of $5.76.
Finzsoft chairman Brent Impey said Bidco was expected to make the offer next year, and the board would update shareholders on the process as it became aware of details.
The proposed offer came after Finzsoft hired PwC in October for a review of its capital and ownership structure, during which Silverlake was identified as a partner in the Asia-Pacific region, Impey said.
In September last year Holliday built up a majority stake of 66 per cent when he made a takeover bid for the company.
Silverlake is a Singaporean tech business, listed on the Singapore stock exchange where the stock has gained 37 per cent this year, last trading at at S$1.20.
The company lifted its annual profit 27 per cent to 248 million Malaysian ringgit in the year ended June 30, on a 26 per cent lift in sales.
This month Finzsoft said it was considering paying its first interim dividend in four years after its first-half profit of $2.02 million in the six months to September 30, compared with a loss of $63,000 a year earlier.
In October the software firm signed its biggest contract, with St George Bank to integrate the motor vehicle and equipment finance businesses of Capital Finance Australia which it said would underpin the previous profit guidance.
Australia now accounts for about 59 per cent of the firm's revenue.
