Trade Me Group says British private equity firm Apax Partners has approached it with a non-binding indicative offer to
take it over for $6.40 per share.
That’s a 25.5 percent premium to Tuesday’s close at $5.10 and values Trade Me at $2.54 billion. The shares are now
trading at $6.06, up 96 cents, or 18.8 percent.
“This indicative proposal is subject to a number of conditions, including the completion of due diligence,” the online
market place says in a statement.
“The board of Trade Me, together with its advisers, has reviewed the indicative proposal and has decided to engage with
Apax,” it says.
Goldman Sachs is advising the company.
“Trade Me has provided Apax with due diligence access on an exclusive basis until Dec. 12 to facilitate a binding offer.
This exclusive access is subject to a ‘fiduciary carve-out’ that permits Trade Me to engage with third parties, should
it receive any unsolicited proposals.”
The directors say there is no certainty the indicative proposal will result in an offer or any other transaction for
Trade Me. Shareholders need take no action in the meantime “and they should not do so without assessing all available
information and seeking their own professional advice.”