Bravura shareholders sell business to Ironbridge
Financial services software provider Bravura will cease being a listed firm on Thursday after shareholders agreed to sell 100 per cent of its stock to private equity firm Ironbridge Capital Management.
Ironbridge had progressively taken larger stakes in Bravura after it raised capital through the issuance of rights, and before yesterday’s shareholder meeting held 67.12 per cent of Bravura.
Bravura and Ironbridge had announced a Scheme Implementation Agreement for the full purchase in mid-June of this year, which was supported by the chair and non-executive director Brian Mitchell and non-executive director Trevor Parry.
The two directors recommended the sale of all shares to Ironbridge, stating that they would receive $0.28 per share which was a premium of 65 per cent on Bravura’s share price of $0.17 on June 27, the day before the scheme was announced. Since that time however Bravura’s share price has held around the $0.275 mark.
The directors also stated the sale provided certain and immediate value and overcame Bravura’s limited ability for shareholders to realise value, given its low trading liquidity.
When put to the vote, 199 of the 218 shareholders - representing 99.12 per cent of shares - voted with the resolution to sell to Ironbridge at a general meeting held yesterday.
Bravura will seek orders from the Federal Court of Australia for the scheme to proceed. If granted it will become effective this Thursday and its shares will be suspended from trading on the Australian Stock Exchange at the close of trading.
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