Light Street Capital to vote against Zendesk’s $10.2 bln go-private deal – Reuters

August 29, 2022 by No Comments

Zendesk logo is seen in this illustration taken June 27, 2022. REUTERS/Dado Ruvic/Illustration

Register now for FREE unlimited access to Reuters.com

Aug 29 (Reuters) – Zendesk Inc(ZEN.N) investor Light Street Capital Management said it would vote against the software company’s $10.2 billion deal to go private and instead proposed that it remain a standalone public company and find a new top boss.

Light Street, which manages funds that own more than 2% ofZendesk, said on Monday the deal struck with investment firms led by Hellman & Friedman and Permira undervalues the San Francisco-based company.

The investor’s move marks the latest in a string of events that followed Zendesk’s failed attempt last year to buy SurveyMonkey parent Momentive Global Inc (MNTV.O) in a $3.9 billion deal.

Register now for FREE unlimited access to Reuters.com

After persistent pressure from activist investor Jana Partners, Zendesk had agreed to the sale of the company in June. read more

In a letter to the board on Monday, Light Street proposed a recapitalization of the business, consisting of a $2 billion preferred equity investment arranged by Light Street and a $2 billion incremental debt facility.

The investment firm also suggested that the company issue a $5 billion tender offer at $82.50 per share for shareholders who would like to sell their shares.

<p data-testid="paragraph-6" class="text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_…….

Source: https://www.reuters.com/business/light-street-capital-vote-against-zendesk-102-billion-go-private-deal-2022-08-29/

Tags:

Leave a Comment

Your email address will not be published. Required fields are marked *