Bigtincan is the latest software company to find itself on the receiving end of an opportunistic takeover bid, disclosing a $442 million unsolicited bid from one of its largest shareholders.
While Bigtincan did not grant SQN due diligence, it has established an independent board committee to evaluate and respond to the proposed scheme of arrangement. This is one of the reasons why Forager Funds Management chief investment officer Steve Johnson says SQN’s 80¢-per-share bid undervalues the company “is opportunistic”.
Forager first bought into Bigtincan a little over a year ago when it was trading about $1.30, but it has further grown this year as the share price fell. It now makes up 5 per cent of its fund, and it owns about 2 per cent of Bigtincan.Bigtincan shares leapt almost 10 per cent to 75¢ at 11.30am AEDT after the announcement, still below the 80¢ bid price. Mr Johnson said this reflected the fact investors didn’t believe a deal would be done at this price.
8 cents would be a more realistic bid.