(Bloomberg) -- Owners representing at least 12% of the stock in Karnov Group AB have publicly rejected a takeover approach for the Swedish legal and accounting company, saying an offer of 84 kronor ($7.86) per share is too low.

UK-based Blackmoor Investment Partners Ltd, owning about 1% of the shares in Karnov, told Bloomberg that the valuation offer of 9 billion kronor is far from reflecting the firm’s true potential.

“It’s rare in Europe to have a software oriented company of this quality and this competitive positioning,” Blackmoor Chief Investment Officer Douglas Smith said by phone. “Most of them are listed in the United States and for a reason, their cashflows are valued much more highly there.”

Blackmoor’s stance chimes with other investors, including US-based Anabranch Capital Management LP and Sweden’s Didner & Gerge Fonder AB, which have similarly rejected the cash offer made earlier this month. That effectively blocks the buyout proposed by Greenoaks Capital Partners LLC and Long Path Partners LP given they must acquire more than 90% of Karnov shares on a fully diluted basis for the bid to succeed. 

Blackmoor’s Smith says he has high expectations that Karnov will continue to grow in its core markets and increase synergies from recent acquisitions in Southern Europe. He adds that peer multiples suggest a share price valuation in the mid to high 90s.

“But of course that’s not taking into account expected consensus upgrades in the future years which, as a long-term owner, we value,” Smith said.

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