Global investment firm Bain Capital has partially exited its stake in Australian accounting software company MYOB through a block trade, according to a filing on the Australian Securities Exchange on Thursday.
Bain sold 100 million ordinary shares priced at A$3.55 per share equivalent to A$355 million ($273 million; €259 million), compared to MYOB’s last share price of A$3.69.
The firm still continues to own 237,151,360 ordinary shares in MYOB, representing a 39.1 percent stake.
The sale came hours after MYOB reported its annual results – the company’s revenues increased by 13 percent or A$370.4 million compared with the previous year. Meanwhile, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) were A$171.5 million, up 12 percent.
MYOB provides business management and accounting software to over a million small and medium enterprises and 10,000 accounting practices across the Asia-Pacific region
Bain bought a majority stake in MYOB in 2011 for A$1.2 billion from Sydney-based private equity group Archer Capital, Squadron Asia Pacific (acquired by Aberdeen Asset Management in May 2015) and HarbourVest Partners, fending off rivals KKR, Hellman & Friedman and UK software company Sage.
The firm then floated software company in May 2015 but retained a 56 percent stake in the business.
It is unclear from which fund the investment was made however Private Equity International has learned that Bain's first Asia-focused fund, 2007-vintage $1 billion Bain Capital Asia is returning over 2x investors' capital.
Bain, with approximately $75 billion in assets under management, is currently in the process of deploying capital for its latest Asia-focused vehicle, Bain Capital Asia Fund III, which closed on $3 billion in December 2015.