LiveHire board backs Humanforce’s on-market cash takeover offer
Unlisted Australian company Humanforce has made an unconditional on-market takeover bid for recruitment platform LiveHire (ASX: LVH) at a cash price of $0.045.
The bid follows a competitive process initiated by LiveHire several months ago to find a strategic new investor or owner for its ailing business.
Humanforce currently owns a 19.99% holding in LiveHire and has appointed MA Moelis Australia Securities as its broker for the purchase of the remaining shares.
Board recommendation
LiveHire’s directors have stated they intend to accept the offer and have recommended shareholders do the same.
“We began a concerted and intensive effort to find a strategic new investor or owner for the business several months ago,” the board said.
“Following a global search for alternative buyers and investors, we entered into a bid implementation agreement with Humanforce at a compelling price that will provide an important liquidity option for our shareholders.”
Humanforce’s offer provides LiveHire shareholders with a straightforward cash exit and immediate value for their LiveHire investment at a price that represents a 75.8% premium to the 30-day volume-weighted average price.
Workforce management
Established in 2002, Humanforce operates a software-as-a-service platform providing workforce management solutions with subsidiaries in Australia, New Zealand, Singapore and the UK.
It is a portfolio company of US private equity firm Accel-KKR Growth Capital Partners and claims it has the capital, expertise and relationships to help LiveHire scale faster and more profitably.
Humanforce has stated that once it has secured 90% or more of LiveHire shares, it would proceed with compulsory acquisition and arrange for LiveHire to be de-listed from the Australian Securities Exchange.
Ongoing viability
In the event that Humanforce is not successful in its takeover bid, LiveHire has confirmed there would be significant doubts about its ability to continue operating and may involve the appointment of an external administrator.
“There are inherent risks in continuing to own LiveHire shares, particularly in connection with the company’s near-term capital requirements,” LiveHire said.
“Given the historical operating losses, the ability of the company to continue as a going concern is primarily dependent on its ability to raise additional debt or equity finance to continue the development and commercialisation of its software platform.”