11th Dec 2015 15:09
LONDON (Alliance News) - The board of ISG PLC said Friday it is unanimously rejecting an unsolicited 143 pence per share offer from Cathexis UK Holdings Ltd valuing the business at GBP70.8 million.
Cathexis already holds a 29.5% stake in the construction services company, having been a shareholder in the business since March 2012.
"Cathexis' offer is unsolicited and totally inadequate. Disappointing trading conditions in our UK Construction divisions aside, it fails to reflect the strong trading conditions and outlook for the rest of our business. As such the Board urges ISG shareholders to reject this offer once made," said Non-Executive Chairman Roy Dantzic in a statement.
ISG's board will be writing to shareholders with a formal response to the offer once an offer document has been posted, and in the meantime strongly advised shareholders to take no action and, in particular, not to sell their shares.
Shares in ISG were up 15% at 139.75 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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