MYOB's directors have rejected a revised bid from potential suitor KKR, which knocked off close to $20 million from its original asking price.
The US investment firm's original unsolicited and non-binding bid was revealed in October and would see KKR acquire the remaining MYOB shares it doesn't already own for $3.77 each, valuing MYOB at $2.2 billion.
KKR has since revised its offer down to $3.40 for each share after it completed due diligence and finalised its debt funding commitments, which values MYOB at $2.01 billion.
The potential acquisition requires approval from MYOB's board of directors, who informed KKR that they weren't in a position to recommend the new offer but would maintain discussions.
"MYOB will keep the market informed of any developments. MYOB shareholders do not need to take any action in relation to the revised proposal at this stage," MYOB said in a statement.
The proposal is also subject to the finalisation of a scheme implementation agreement which expires at 5pm tomorrow.
MYOB's shares were trading at $2.98 prior to KKR's original $3.70 offer, representing a 24 percent premium. MYOB's share price shot up to $3.52 after the bid was made public, but have dropped by more than 10 percent this morning after announcing KKR's revised bid, sitting at $3.02 each at the time of writing.
KKR managed to snap up almost 104 million shares for $3.15 each from Bain Capital prior to the first proposal. The investment firm currently owns 19.9 percent of MYOB's shares.