Digital marketing heavyweight Mission Group is looking at an increased £32.3 million takeover bid from industry rival Brave Bison, but said the higher offer is unlikely to get its support.
The company, which is behind the Social Chain agency founded by Dragons' Den star Steven Bartlett, made an improved bid of about 35.1p per share for Mission on May 25, after its initial pitch was rejected. The new proposal suggests giving Mission shareholders about a 50% holding in the newly formed company and would offer a partial cash alternative of up to 50% of the offer price.
This marks an increase from Brave Bison's first all-share offer, which valued Mission at roughly £27million or around 29p per share. But Mission Group has cast doubt on the new bid's adequacy, said: "The board's preliminary view is the revised possible offer does not reflect Mission's contribution to the proposed combined group."
They also mentioned that they're mulling over the revised bid with their advisors and will update the market when appropriate. Previously, Mission's bosses rebuffed the original offer, saying it was "opportunistic and significantly undervalues the group and its prospects".
Brave Bison has a June 9 deadline to either firm up its offer for Mission Group or back out, under City Takeover Panel rules. However, it has made it clear on Monday that without an extension to this deadline, it's unlikely the potential deal can move forward, stating it "does not believe the possible offer can be progressed further and is seeking an extension to the offer deadline to facilitate a constructive discussion between the parties".
Pub delivers five-word response to critics of its 'slow' carvery service
The company, which enjoys the financial backing of billionaire Lord Michael Ashcroft, a former deputy chairman of the Conservative Party who holds a stake exceeding 20% in Brave Bison, is eyeing a strategic acquisition. Mission Group, with a workforce of more than 1,100 individuals, is known for crafting digital marketing content for heavyweight brands such as Google, Porsche, Kinder, and Speedo.
Last month, when Brave Bison first hinted at its bid intentions, it touted that merging with Mission Group would forge one of the UK's most formidable independent digital marketing agencies listed on Aim, boasting combined sales close to £120million and underlying earnings in the region of £14million.
Should the acquisition go through, Brave Bison plans to have the Green brothers, Oliver and Theo currently serving as executive chairman and chief growth officer respectively lead the expanded entity, following their takeover of Brave Bison in 2020.
With operations spanning nine countries, Brave Bison has previously argued that acquiring Mission Group would not only bolster the latter's balance sheet but also address its financial obligations, which include loans and "certain overdue creditors" amounting to approximately £30 million, due within the next two years.
Read more similar news:
Comments:
comments powered by Disqus
