(Alliance News) - Kape Technologies PLC on Friday said its shareholders should "seriously consider accepting" a revised takeover bid from Unikmind, despite it having reservations about the size of the offer.
The digital security software provider on Thursday received a final cash takeover offer from Unikmind. The new bid valued Kape at USD1.54 billion, up from a previous offer which put a USD1.47 billion valuation on the company.
On Friday, Unikmind, which already owned a 54% stake in Kape, said it purchased around 4.0% more of the company, resulting in a 58% holding. In addition, it said it received commitments of support for just under 13% more of Kape shares, effectively giving it control of 71% of the company.
Kape noted this development and warned on the rights of its minority shareholders should Unikmind win enough support to power through a delisting. Kape believes Unikmind will get enough support to do so.
"Therefore, notwithstanding the value of the revised offer, the independent directors believe that Kape shareholders should seriously consider accepting the revised offer," Kape said.
"Kape shareholders who anticipate realising greater value in their Kape shares in the future, whilst recognising and being willing to accept the risks associated with remaining as an investor in an unlisted company controlled by Unikmind, may wish to remain as shareholders in Kape."
By Eric Cunha, Alliance News news editor
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