Australia's ReadyTech gets updated buyout offer with scrip alternative

Nov 30 (Reuters) - Australia's ReadyTech Holdings (RDY.AX) said on Wednesday suitor Pacific Equity Partners (PEP) had come up with an updated offer that allows its shareholders to choose the A$4.50 per-share consideration in cash, shares or a mix of both.

Private equity firm PEP has also decided to drop its plan to work with ReadyTech's largest shareholder Pemba Capital Partners on the proposal, ReadyTech said.

Earlier this month, PEP offered to buy ReadyTech for A$481.4 million ($308.3 million), highlighting heightened interest in Australia's technology sector amid cheap valuations.

The offer had received pushback from ReadyTech's second-largest investor, Microequities Asset Management.

ReadyTech said its independent board committee was in talks with PEP regarding the terms of the new alternative, and advised that it was in the interests of shareholders to continue to engage with PEP on a non-exclusive basis.

Shares of the software company rose as much as 3.5% in early trading amid a weak broader market.

Reporting by Himanshi Akhand in Bengaluru; Editing by Shailesh Kuber and Subhranshu Sahu

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