Private equity firm Potentia Capital isn’t taking no for an answer at Nitro Software, buying more stock to take its stake towards the maximum 19.9 per cent on Wednesday.
Only hours after a swift rejection, Jarden’s equities desk was back in the market buying Nitro Software shares at $1.58 a share – which was the same price as Potentia’s buying on Monday night.
Jarden’s trades included one line of 5 million shares at $1.58.
Assuming the stock was bought for Potentia, which is a very safe assumption given the broker involved, the timing and the price, it would take the suitor’s stake to at least 19 per cent.
The buying comes as Nitro Software rejected Potentia Capital’s $1.58 a share indicative and non-binding bid, labelling it “opportunistic”.
Potentia Capital made the offer on Tuesday morning, having already secured about a 17 per cent stake.
Nitro Software shares closed at $1.58 on Wednesday.
The fact Potentia was able to top up its stake to the maximum allowed on Wednesday was as good a sign as any that there will be some pressure on Nitro Software to lock in a bid from Potentia.
While institutional investors Forager Funds and Australian Ethical backed the company’s decision to reject the bid, there were clearly some sellers still left on Nitro Software’s register at $1.58.