Digital sports media company Perform Group has recommended that its shareholders should reject a takeover bid by Access Industries after saying that the offer “undervalues” the company and its prospects.
Earlier this week, the US conglomerate holding company made an offer to increase its shareholding in Perform to 100%.
Through its PTV subsidiary, Access Industries holds 42.5% of the issued share capital of Perform, which operates sports betting services including real-time sports data provider RunningBall and the Watch&Bet live streaming service.
Access Industries announced it would offer 260 pence for each Perform share, which represents a premium of approximately 27.6% over the closing price of 203.8 pence on August 29, the last business day prior to the announcement of the proposed takeover.
The offer valued Perform at around £701.6 million (€885.6 million/$1.2 billion).
However, the Perform board of directors, which is being advised by Rothschild, said that although it values Access Industries as a “long-term shareholder and supporter” the final cash offer is insufficient.
As a result of this conclusion, the board will recommend to Perform shareholders that the final cash offer, when made, should be rejected.
The board will write to shareholders to explain its views on the final cash offer after the formal offer document has been issued by Access Industries.
In the lead up to this, the board has strongly urged shareholders to take no action in relation to their own shares.
source : www.igamingbusiness.com