SBC News Voice of the Sports Betting Industry
Perform Group PLC independent board directors issued a document to shareholders urging them to reject a £702 million final takeover bid from Access Industries Group. The board believe that the offer undervalues the company and its potential future growth.
September had seen Access Industries make a 260 pence a share offer for the remaining 57% stake in the media rights operator. The price valued the remaining stake in Perform at £410 million and values the whole company at £702 million.
Access Industries publicly stated that they would not revise their value of Perform Group, and that the 260 pence offer would be final given the company’s performance which had seen pre-tax losses of £4.18 million in 2014.
Last week saw Perform Groups independent directors issue a statement reasoning the rejection of the offer made by Access Industries .
In that statement, the directors reiterated that the Access Industries bid undervalues the company, which they stated had successfully restructured since it gave a profit warning in December last year. The bid is below most equity research target prices and the 28% takeover premium is too low given that the average takeover premium over the last five years in 41%, they added.
They pointed out the company has achieved strong quarterly revenue growth reports since listing, averaging 39% growth, and said the company had recorded strong results for the first half of this year.
The independent directors also stated that the company had now reached a positive point in the business cycle and that it was poised for further growth.
“Accordingly, the Independent Directors unanimously recommend that Perform shareholders reject the offer. To do so you should take no action in relation to the offer and should not complete the form of acceptance or any other documents sent to you by Access Industries”.
