Jason draws on the “arm wrestle” to gain control of Tyro Payments to explain how the pre-bid agreement between private equity firm Potentia, whose offer was immediately rejected by the Tyro board, and Tyro’s biggest shareholder, Grok Ventures, includes “all the high-stakes ingredients to make for fascinating viewing”.
A pre-bid agreement, Jason writes, is an arrangement between a potential bidder and a target shareholder which, in effect, commits the target shareholder to accept the bidder’s offer. It can provide a bidder with a clear tactical advantage in seeking to acquire an ASX-listed company because they allow the bidder to build a strategic position in the target whilst deterring competing bids.
“Grok, the private investment company of Atlassian co-founder Mike Cannon-Brookes, is an invaluable ally for Potentia. But unusual features of their pre-bid agreement may be open to attack by rival bidders, and provide the catalyst for legal action around whether such arrangements fairly represent the interests of all shareholders.”
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