20th Oct 2021 11:33
Arena Events Group PLC - Services major events, supplying things such as temporary physical structures and seating - Agrees to be taken over by Theta Bidco Ltd in deal worth enterprise value of GBP95.1 million. The suitor - owned by joint offerors IHC Industrial Holding LLC and Tasheel Holding Group LLC - will pay 21 pence per Arena share, being a 48% premium to Tuesday's closing price. It values Arena's entire issued share capital at GBP71.0 million.
"IHC and Tasheel are both diversified holding companies, formed as part of initiatives to diversify and grow non-oil business sectors in the United Arab Emirates and Saudi Arabia respectively. Arena fits well into that diversification strategy, particularly given the growth potential of the temporary events structures market in the Middle East," they note.
Company adds: "Tasheel has an existing broad relationship with Arena and has been instrumental in helping Arena grow in the provision of temporary events structures in Saudi Arabia, which is developing in terms of large-scale cultural and sporting events."
Arena Chair Ken Hanna says deal offers "attractive value to shareholders".
He continues: "The offer from the consortium represents a substantial premium to the Arena Group's existing share price and recognises the quality of Arena, the agility of the business to successfully rebound from the Covid-19 pandemic and its standing amongst its peers as the world of events returns to normality.
"As a privately owned group, the new owners will help Arena grow through additional funding which guarantees the future of the business as a leader in the event rental market. In this regard, both IHC and Tasheel are perfect partners for Arena as they provide enormous security and backing for the business going forward."
Current stock price: 20.21 pence; up 43% on Wednesday
Year-to-date change: up 97%
By Paul McGowan; [email protected]
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