M&C Saatchi rejects Vin Murria’s sweetened takeover bid, valuing the advertising company at £254m
- M&C Saatchi chairman said the offer was “mocking” and urged investors to reject it
- Murria urged M&C Saatchi shareholders to support the improved offerings
- She said both offers valued M&C Saatchi shares at 207.5p each
- The two companies have been in takeover talks since January
The board of directors of the advertising group M&C Saatchi has turned down a sweetened takeover bid from top investor Vin Murria, which values the company at £254m.
M&C Saatchi chairman Gareth Davis called the offer “ridiculous” and urged shareholders to reject it.
It comes as Murria — the company’s vice chairman and largest investor, who made her initial bid in January through her investment vehicle Advanced AdvT — urged M&C Saatchi shareholders to back her latest bid.
New offer: Vin Murria’s improved offers value M&C Saatchi at £253.6m
Under the improved deal, the ad firm’s shareholders will have a choice of a cash and share offer, where they would receive 2,043 new AdvT shares and 40p in cash, or an all-share option, where they would receive 2,530 AdvT shares would receive.
AdvT said both deals valued M&C Saatchi at £253.6m based on AdvT’s closing price yesterday of 82p.
That’s 207.50 pence per M&C share, a 27 percent premium to the company’s closing price of 163 pence on Monday.
But Chairman Davis said: “This offer is ridiculous. I urge shareholders to reject this offer as it significantly undervalues M&C Saatchi’s business and prospects.’
M&C Saatchi shares Soared almost 10 percent to 179 pence in early trading on Tuesday before giving up half of those gains to trade 5.4 percent higher at 171.9 pence in the afternoon session.
AdvT is 13 percent owned by Murria and also backed by private equity group Marwyn. AdvT itself holds 9.8 percent of M&C Saatchi.
Together, AdvT and Murria own 22.3 percent of M&C Saatchi.
The deal is backed by around 20 percent of M&C Saatchi’s shareholders, AdvT said.
Overall, the deal is supported by around 42 percent of shareholders.
For the deal to go through, it needs to get the support of 75 percent of M&C Saatchi investors.
Murria told investors, “Having sought the recommendation of M&C Saatchi’s independent directors since early January, to date we have not received it.
‘With today’s announcement, we are seeking the support of M&C Saatchi shareholders in addition to the shareholders who own 20.2 percent of M&C shares and have already expressed their support.’
AdvT’s original bid valued M&C Saatchi at around £220m but that and two other bids in the second half of January were rejected by the company’s board.
Her offer comes as the Up or Shut Up deadline arrived today, having already been extended four times.
But the tech entrepreneur faces an uphill battle after the ad group shut down brilliant results which showed it was returning to profit after revenue increased by a fifth.
M&C Saatchi rejects Vin Murria’s sweetened £254m takeover bid
Source link M&C Saatchi rejects Vin Murria’s sweetened £254m takeover bid