Australian IT services provider ASG Group has swooped in with a rival offer for IT provider SMS Management and Technology following competitor DWS' bid for the company in February.
DWS offered $1 in cash and 0.39 shares for each SMS share for a total of $1.66 per share - and a valuation of $124 million - in late February.
SMS' board recommended shareholders vote yes to the proposal, which if successful would combine two of the country's largest IT solutions companies.
But this morning SMS revealed it had received an expression of interest from ASG - the formerly listed Australian IT services company that was bought out by Japan’s Nomura Research Institute last December for $350 million - on Friday evening for $1.80 per share in cash.
SMS shares were sitting at $1.69 at the time of writing.
The ASG EOI is non-binding and won't necessarily turn into a formal offer, SMS noted, but said it could result in a bid that is superior to the DWS proposal.
The SMS board will therefore engage with ASG on the EOI, it said.
However, it continues to recommend SMS shareholders vote for the DWS deal in the absence of a better offer.
Shareholders are scheduled to vote on the DWS proposal on June 14.