Australian technology provider Iress is scrutinising a third takeover bid from EQT Fund Management.

The Iress board rejected the initial offer last month as it was “not considered to be in the best interests of shareholders”.

EQT proposed buying all of Iress’s shares via a recommended scheme of arrangement at a price range of between A$15.30 and A$15.50 cash per share.

The proposal followed a previous bid on 18 June for A$14.80 per share.

In an update from 11 August the company said: “The board has carefully considered the proposal, including obtaining advice from its financial and legal advisers, and considers it in the best interests of shareholders to engage further with EQT in relation to the proposal. Iress has agreed to grant EQT a period of 30 days to undertake its due diligence.”

Under the terms of the third bid a revised offer of A$15.91 cash per share also comprising cash consideration of A$15.75 is to be paid by EQT.

Alongside this a permitted FY21 interim dividend for eligible shareholders up to A$0.16 per Iress share is proposed.

Previous proposals made by EQT on 18 June 2021 and 4 July 2021 assumed there would be no further dividends paid by Iress or capital management prior to completion of any transaction.

Iress has appointed Goldman Sachs as financial adviser and King & Wood Mallesons as legal adviser. The Iress board is also being independently advised by Gresham Partners.

Responding to the announcement, Financial Technology Research Centre director Ian McKenna said: “It is very encouraging to see management supporting the bid as customers can be assured of continuity. Equally the increased share price validates the previous decisions to reject the first and second bid. So it looks like the price is right this time around with the share price 40% up on 12 months ago. So investors should be very happy.”