ReadyTech (RDY AU) Rejects Total Specific Solution's NBIO

• This morning (1st June), in response to an AFR article, Saas’s provider ReadyTech Holdings (RDY AU) confirmed Total Specific Solutions (TSS) has submitted a conditional NBIO.

• TSS is offering A$2.00/share by way of a Scheme in parallel with A$1.75/share conditional Offer predicated on a 50.1% minimum acceptance condition.

• In response, ReadyTech said it “has determined to reject the on the basis that it does not reflect the inherent value of ReadyTech ... and ... would not be executable“.

ReadyTech is illiquid - look away now if this is not your thing.

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The Trade:

• Readytech was trading marginally above a six-year low - before the Offer.

• Pemba Capital & Microequities will not be supportive.

• The share price is up 21% at A$1.68/share.

• I would not chase this.

• If illiquid indicative arbs are your bag, get involved in any material weakness.

This insight is labelled bullish as I’m not bearish here.