Game on at Nitro! KKR portfolio company bids $2 a share

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Potentia Capital is going to have to lift its bid again if it’s to acquire ASX-listed Nitro Software.

Nitro has entered a process deed with KKR-backed Alludo, a North American software company, which is getting exclusive due diligence with a bid at $2 a share.

Alludo, advised by Parella Weinberg and G+T, has structured its offer to try to get around Potentia’s 19.9 per cent blocking stake, proposing a scheme of arrangement or off-market takeover bid with a 50.1 per cent minimum acceptance condition. The bid’s at an 11 per cent premium to Potentia’s latest offer and comes after Nitro had investment bank UBS and boutique Cadence run a quick auction to find a competing bid.While Alludo sinks its teeth into the data room documents, Potentia will have to decide whether to hit back.and seek to own part of the Alludo-controlled Nitro, or sell into the offer and realise a small gain on its investment. It was first on the scene and is the company’s biggest shareholder, which keeps it in the hunt.

 

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