Bravura rejects takeover offer
Bravura Solutions has rejected what it deems an “incomplete, indicative and non-binding proposal” to acquire all of its issued capital within a price range of 17.5 to 20 cents per share.
The proposal was subject to the satisfactory completion of due diligence and a number of other conditions.
Bravura said it rejected the proposal because it believed it undervalued the firm, particularly in light of its significant improvement in (EBITDA), excluding licence fees, and operating cash flow, which together, along with its recent acquisition of MFT, has improved its strength in core markets. Bravura added these factors; coupled with its imminent product release, means its current share price is too low.
Earlier this year, Bravura announced a net loss of $13.2 million after tax for EBITDA excluding licence fees, which is attributed to the exchange rate. However, following a management review, the firm managed to decrease its operating costs by $26 million.
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