4th Feb 2016 15:20
LONDON (Alliance News) - Construction services company ISG PLC on Thursday said it has decided to reject the takeover offer from Cathexis UK Holdings Ltd.
Last week, Cathexis raised its offer to 171.00 pence per share from 143.00p previously, valuing ISG at GBP84.6 million.
ISG on Thursday said its directors were unanimous in rejecting the offer, claiming that it undervalues the company.
"The board has taken into account the recent issues in UK Construction and the likely time it will take for ISG to fully deliver on the turnaround plan that is in progress. The board remains confident that delivery of this plan, coupled with the ongoing progress being made in its core fit out businesses, will provide over the medium term greater value for shareholders than the offer," ISG said.
Cathexis currently owns about 33% of ISG. "The board of ISG strongly advises all shareholders to take no action and, in particular, not to sell their ISG shares," ISG said.
Shares in ISG were up 0.2% at 170.91p on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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