Software of Excellence has defended the use of major shareholder Co-Investor Capital Partners as an adviser on the takeover bid for the dental software company, saying it has saved shareholders money.
Co-Investor will be paid up to $350,000 by Software of Excellence for advice if the $2.70 a
share takeover bid by US firm Henry Schein succeeds. It has already agreed to sell its 16.8 per cent stake.
Software of Excellence said Co-Investor was an experienced financial advisory firm and "has dedicated a team of experienced personnel to managing the bid process for several months".
"Given that Co-Investor has the skills and personnel, and knows the company better than any external adviser, we elected to appoint them as adviser on the Henry Schein takeover offer," said Software of Excellence chief executive Brian Weatherly.
"We believe the fee arrangement is below the market rate for advice in a transaction of this nature, and therefore SOE shareholders will save hundreds of thousands of dollars as a result of this appointment."
The maximum $350,000 fee to be charged by Co-Investor is less than the threshold - 0.5 per cent of the value of a company - that would require shareholder approval for transactions between related parties, Software of Excellence said.
Henry Schein's offer is conditional on it winning 90 per cent of Software of Excellence, whose shares closed up 1c at $2.61.
