Hertal, the management buyout (MBO) vehicle seeking to gain control of Riverdeep, has received the approval of 86 per cent of unconnected shareholders, making its offer for the educational software group unconditional in respect of acceptances.
Hertal's offer has been extended until April 4th, after which time the management team will move to acquire compulsorily remaining shares.
Welcoming the acceptance result, Riverdeep's chief executive and a leading player in Hertal, Mr Barry O'Callaghan, said he was also pleased to see the MBO team's share offer had proved to be a "credible alternative for corporate, institutional and retail investors".
Hertal asked Riverdeep shareholders to decide between a cash offer of $1.51 (€1.41) per share or an option to take shares in the post-MBO entity.
As of yesterday, 9 per cent of those shareholders asked to vote had chosen the share option.
This means Riverdeep shareholders have taken up 80.88 per cent of the 21.5 million Hertal shares, or 17.5 per cent of the company open to them. A further three million Hertal shares will remain on the table until April 4th.
It is understood that the shareholders opting to accept the share offer are primarily institutional holders, although some retail investors have also chosen to forgo the cash alternative.
Mr O'Callaghan has urged Riverdeep shareholders who have not yet made a decision on the Hertal offer to move quickly in order to receive their money or shares "as soon as possible".
Shares in Riverdeep closed three cents higher at €1.37 last night.
