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

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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.

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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.

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