The data-driven growth consulting firm Next Fifteen Communications Group (NFC ) has reached an acquisition agreement with M&C Saatchi (SAA ) - which earlier this week rejected a £253.6 million offer from AdvancedAdvT - that will value the agency at around £310.1m.
The deal values each M&C Saatchi share at 247.2 pence, with shareholders getting 0.1637 of a new Next Fifteen share and 40 pence in cash. The offer is a 47.6% premium to the Saatchi closing price of 167.5p on 4 January 2022, being the last day prior to ADV’s announcement of its acquisition of a minority stake, and a 49.8% premium to yesterday’s closing price of 165p.
On Tuesday, M&C Saatchi announced that it had rejected a £253.6m takeover proposal from AdvancedAdvT, telling investors that it significantly undervalued its business and prospects.
Following the completion of today’s proposed acquisition, M&C Saatchi shareholders will own approximately 17.3% of the enlarged company on a fully diluted basis, the company reported.
The Directors of M&C Saatchi said they would be recommending the terms of the acquisition. Addressing shareholders, they also said they considered the terms superior to those offered by AdvancedAdvT Ltd, thereby urging shareholders to take no action regarding that offer.
In a statement released today, AdvancedAdvT - which together with Vin Murria owns 22.3% of M&C Saatchi’s issued share capital- stating that its Board is now considering all of its options.
Chairman of M&C Saatchi Gareth Davis said the board’s independent directors are “pleased to unanimously recommend this alternative, more attractive offer which we are confident is in the best interests of M&C Saatchi shareholders and M&C Saatchi’s other key stakeholders.”
He commented: “The M&C Saatchi independent directors all consider Next Fifteen’s offer to be far superior to the offer announced earlier this week by ADV, and a clear repudiation of ADV’s response statement that it strongly disagreed its bid undervalued M&C Saatchi.”
Tim Dyson, Chief Executive Officer of Next Fifteen Communications, said: “This is an exciting opportunity to bring together two highly complementary businesses creating a truly global and diversified group with exceptional capabilities, clients and talent. Bringing M&C Saatchi into the Next Fifteen group provides us with a step change in our scale and global reach, and an enhanced ability to offer digitally driven solutions to growth-minded organisations.”
Shares in Next Fifteen Communications Group were trading 1.42% higher during late morning trading at 1,282p while M&C Saatchi’s shares jumped by 34.65% to 222.5p amid the news.
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