M&C Saatchi rejects top investor’s buyout offer
M&C Saatchi has rejected a fourth takeover offer from Vin Murria, its biggest investor. According to the ad Group, the proposal, which it termed “derisory”, undervalued the Group’s business. The said proposal was worth 253.6 million pounds, according to reports.
The acquisition vehicle AdvancedAdvT, through which Murria announced the fresh offer, gave M&C investors a choice between receiving 2.530 new AdvancedAdvT shares for each share held or a mix of cash and shares.
Based on AdvanceAdvT’s last closing share price, both options value M&C Saatchi at 207.5 pence per share, representing a 27% premium to M&C’s Monday closing price.
Responding to the offer, Gareth Davis, Chairman, M&C Saatchi said in a statement,” “I urge shareholders to reject this bid as it significantly undervalues the business and prospects of M&C Saatchi.”
The company said its independent directors have also unanimously rejected AdvancedAdvT’s offer.
AdvanceAdvT’s previous all-stock approach from February was worth 2.347 AdvancedAdvT shares for each M&C share. The Ad group disclosed on Tuesday it had also rejected two other lower proposals made in January.
“ADV has access to an existing pipeline of selective (mergers & acquisitions) opportunities comprising businesses that enhance M&C Saatchi’s data and analytics capability, as well as complementing the existing offering,” it said.
Murria and AdvanceAdvT own 22.3% of M&C. Shareholders owning a further 20.2% have indicated their support for AdvanceAdvT’s offer, it said, adding that it would add two industry veterans to the board of the combined company if a deal is completed.
AdvancedAdvT, which is also backed by private equity group Marwyn, wants to combine its digital capabilities with the brand recognition of M&C – known for its historical advertising links to Britain’s ruling Conservative Party – and invest heavily in M&C to help it compete better.
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