BDI.L Share News (BDI)

LONDON (Alliance News) - Bond International Software PLC said Wednesday it is recommending a final cash offer for the company from Constellation Software UK Holdco Ltd over a previously mooted plan for an asset sale and liquidation.

Bond said that the increased offer from Canada-based firm Constellation offers, "greater certainty in timing and the amount of cash distribution", than a previously recommended sale of its recruitment software business to Symphony Technology Group LLC.

Constellation's final cash offer values the company at 121 pence a share, a premium of 15% to its original June bid of 105p a share, and values Bond at approximately GBP51.2 million. The offer price is a 38% premium to Bond's share price of 87.5p on June 2, the last day before the first offer was made.

Shares in Bond International Software were untraded at 119.25p Wednesday.

Bond has opted for the offer over Symphony Technology's GBP20.7 million offer for Bond's recruitment software subsidiaries, following which the company would have been voluntarily liquidated. Bond had previously estimated a deal with Symphony would allow a distribution to shareholders of between 121.00p and 122.50p per share.

However, Bond said Wednesday that its directors have agreed if any of their assumptions in relation to the final distribution from a deal with Symphony turned out to be incorrect, this could have a "material impact" on the distribution and therefore opted for the certainty of the Constellation offer.

Bond is now recommending that shareholders accept Constellation's offer. However Bond's directors, representing 16% of the company's shares are bound by irrevocable undertakings to vote in favour of a sale to Symphony at the company's general meeting on October 24. Should the resolution for the sale to Symphony be passed, Constellation's offer will lapse.

By Adam Clark; adamclark@alliancenews.com

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