Bain Capital Offers an Unsolicited Bid of 425p-450p a Share for Micro Focus

Bain Capital Offers an Unsolicited Bid of 425p-450p a Share for Micro Focus

It seems that the US-based private equity group, Bain Capital is on the spree of acquiring more and more business ventures. As per reports, Bain Capital has earlier acquired SkillSoft, an Irish provider of e-learning software, for $1.2bn and is now showing interest in debt laden Micro Focus, which updates ageing computer systems and tests software.

Apparently, Bain Capital had made an offer of 425p-450p a share contrary to the earlier offer of 371½p. As Micro Focus had suffered major blow following loss of contracts from its major clientele, the prediction of dearth in sales and earnings by 10% by the end of April this year has sent alarming signals in the company.

Amid all this, Kevin Loosemore, Non-Executive Chairman, has replaced Nigel Clifford, Chief Executive, as Executive Chairman of the company putting the future of the company under clouds.

Responding to the news, Milan Radia, an analyst at Jefferies claimed, “They are running just to stand still. Over time, the performance of the company always converges with the end-market growth, which is ultimately negative”.

Moreover, Trade buyers Hewlett-Packard, Microsoft, Oracle and IBM and Other private equity firms, such as Duke Street, are also being considered as possible contenders for Micro Focus.

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