14th Jun 2022 14:49
(Alliance News) - AdvancedAdvT Ltd on Tuesday said it posted its final offer document, comparing its offer to buy London-based advertising agency M&C Saatchi PLC to Next Fifteen Communications Group PLC's offer.
"Our all share offer for M&C Saatchi of 209.4 pence per share is notably higher than Next Fifteen Communications's final offer of 198.3 pence per share," AdvancedAdvT's Executive Chair Vin Murria said. On June 6, Murria was removed from M&C Saatchi's board as non-executive director.
M&C Saatchi said that, in light of the offers for the company by each of AdvancedAdvT Ltd and Next Fifteen, it is "not appropriate" for Murria to be proposed for re-election as a director at its annual general meeting on June 30. Vin Murria and her company own just over 22% of M&C Saatchi's share capital as of Tuesday.
Murria on Tuesday added that M&C shareholders will own between 54% and 59% of an enlarged M&C/ADV group, versus 14% of an enlarged M&C/Next Fifteen group. Last Thursday, digital marketing services firm Next Next Fifteen said their takeover offer is final. "We do not believe that the recent market volatility undermines the fundamental proposition of this transaction," said London-based Next Fifteen Chief Executive Tim Dyson on Thursday.
In May, Next Fifteen offered 0.1637 of a Next Fifteen share and 40 pence in cash for each M&C Saatchi share, while under AdvancedAdvT's offer, shareholders in M&C Saatchi would receive 2.043 new shares in AdvancedAdvT and 40p in cash, or receive 2.530 new AdvancedAdvT shares.
At the time of AdvancedAdvT's offer, it valued each M&C share at 207.5p, about 40p lower than Next Fifteen's offer of 247.2p. Next Fifteen's acquisition deal valued M&C at about GBP310.1 million. AdvancedAdvT's proposal had valued M&C lower, at GBP253.6 million.
However, AdvancedAdvT on Tuesday reiterated that due to the fall in Next Fifteen's share price, its own offer now values M&C Saatchi higher.
"Given the fall in recent months in valuations, ADV's net cash and M&A expertise is even more valuable in terms of ability to create future shareholder value for the enlarged shareholder base," AdvancedAdvT, a London-based & listed acquisition vehicle, said.
Shares in AdvancedAdvT Ltd were down 1.2% to 81.76 pence each in London on Tuesday. Next Fifteen stock traded 1.1% lower at 956.00p. M&C Saatchi shares traded 0.1% lower at 180.00p.
By Tom Budszus; [email protected]
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