M&C Saatchi continues to shun ‘derisory’ offer from rival

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Advertising and marketing giant M&C Saatchi has rejected a “ridiculous” £254 million takeover offer from its largest shareholder.

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M&C said it continues to urge shareholders to take “no action” in response to a bid by Vin Muria’s investment vehicle – rival Advanced Aid (ADV) – and stressed that the offer price is now lower than current prices. Is.

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M&C said all 18 members of its executive committee are unanimously opposing ADV’s offer, despite further meetings with the suitors.

M&C Saatchi directors believe ADV proposal to be pretentious

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It said: “The directors of M&C Saatchi are of the view that the ADV proposal is pretentious.

“They believe the ADV proposal fails to reflect the growth and opportunities facing M&C Saatchi and does not provide a fair value for the business.”

M&C also branded the bid as “high risk of damaging culture, triggering a brain drain, revenue loss and price destruction”, while “risking significant revenue loss from disregard for US regulatory (CFIUS) filings”. It happens”.

The all-share and cash-and-share offer values ​​are 175.8p and 182.0p respectively, less than the 200p share price at which ADV acquired its stake in M&C Saatchi in January and the 207.5p-share indicated offer price in May was. According to M&C.

ADV said last week that it had received approval from shareholders for M&C Saatchi’s proposal, owning 12.77% of the company’s issued share capital and therefore controlling 22.59% of M&C.

ADV said that it has decided to bring the unconditional date for its proposal to September 30.

If this can’t seal the deal, ADV said and Ms Muria will try to engage with the M&C board “to implement changes to deliver on the company’s ability.”

M&C, known particularly for its political ads for the Conservative Party, has fielded a takeover approach from Next Fifteen Communications and ADV over the past six months.

In May, M&C initially agreed to a £310 million takeover move by Next Fifteen, but withdrew its support a month after Sutter’s share price plummeted, affecting the value of the deal.

ADV has now created four approaches – most recently valuing the group at £253.6 million – but all have been shunned by M&C.

However, M&C still left the door open for Next Fifteen’s 247.2pa-share offer.

It said Tuesday that directors recognized the “strength of strategic, commercial and cultural fit” of the Next Fifteen offering, but were unable to recommend it to shareholders due to the current Next Fifteen share price.

M&C revealed earlier this month that it has spent £8.4 million over the past six months fighting an acquisition approach.

It said statutory pre-tax benefits fell to £0.3 million in the six months to June 30 from £4.8 million in the same period last year, largely pushed down by costs from an ongoing takeover battle.

Credit: www.standard.co.uk /

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