Veda: takeover bid from US peer

Late in the quarter, Veda (ASX:VED), a data analytics company and provider of credit information and analysis in Australia and NZ, received a non-binding expression of interest from its US-based peer, Equifax Inc., for 100% of the equity of VED at a 35% premium to its last traded price. Since its IPO, VED has performed strongly (+60% pre-Equifax bid), and we've liked the stock for its industry-leading position and the long-term structural tailwinds it enjoys from a shift toward “Comprehensive Credit Reporting”. We viewed the bid from Equifax as little more than an opening shot in what could've become a heated takeover battle with other offshore parties likely to show interest. Indeed, Equifax seems to have acknowledged this also and increased its bid in October (+4.6%) in return for exclusive due diligence access and VED board recommendation. The bid is subject to standard conditions and will take three to four months to complete. We'll continue to monitor the situation but now view the entry of competing bidders as less likely and may redeploy this capital should the opportunity arise. To access further commentary click on the Sep Quarterly for OC Premium Small Companies Fund attached below