Workplace management software company Damstra Holdings has found itself in private equity’s crosshairs, going through a round of takeover talks with a US suitor.
Damstra executive chairman Johannes Risseeuw and CEO Christian Damstra each own about a 10 per cent stake in the company.A man Johannes Risseeuw, took the approach seriously. The air raid sirens were ringing and the ASX-listed company called Jefferies’ investment bankers and law firm Gilbert + Tobin for advice.
At Wednesday’s close of 16¢ a share, the stock was trading at 1-times forecast revenue. For context, the stock listed 5.1-times forecast revenue via Morgan Stanley in October 2019, landing in what were much friendlier markets.The big question is at what price Damstra would be willing to sell. The software group’s heavily backed by insiders; chairman Risseeuw and Christian Damstra, the company’s CEO and founder’s son, own about 10 per cent of the company each.