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Australia's MYOB Group announces A$1.75 billion buyout offer from KKR

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Australia's MYOB Group announces A$1.75 billion buyout offer from KKR
Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid   -   Copyright  BRENDAN MCDERMID(Reuters)
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(Reuters) – Australia’s MYOB Group <MYO.AX> on Monday said private equity firm KKR & Co <KKR.N> proposed to buy shares it does not already own in the cloud services provider for about A$1.75 billion ($1.23 billion) after bagging a 17.6 percent stake in MYOB from Bain Capital Abacus Holdings, L.P.

KKR paid about A$327.4 million, or A$3.15 per share, for the stake from Bain to build up its hold in MYOB to 19.9 percent.

The proposal price of A$3.70 cash per share for the stake yet to be owned represents a premium of 24 percent to MYOB’s last close.

MYOB said in a statement said its board has commenced an assessment of the proposal.

KKR’s proposal follows another deal in 2017 wherein it acquired Australian non-bank lender Pepper Group for about A$682 million.

After the share sale, Bain Capital has a remaining hold of about 6.1 percent in MYOB.

($1 = 1.4174 Australian dollars)

(Reporting by Devika Syamnath in Bengaluru; Editing by Marguerita Choy)

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