19th Jan 2016 17:58
LONDON (Alliance News) - ISG PLC late Tuesday reiterated its rejection of the offer received from Cathexis UK Holdings Ltd, and said the level of acceptances remains low whilst its share price has continued to trade above the offer price since the unsolicited offer was lodged.
ISG confirmed its rejection of the offer from Cathexis after reviewing documents, stating the board has unanimously rejected the offer as "significantly undervaluing the company".
Cathexis already holds a 29.5% stake in ISG and has been a shareholder since 2012. The tabled offer is for 143.0 pence per ISG share, valuing the business at around GBP70.8 million.
ISG shares closed down 0.3% on Tuesday at 149.50p, giving the company a current market capitalisation of around GBP75.0 million.
The company said the level of acceptances to the offer as at the first closing date last Monday was only 1.58% of the company's current issued share capital.
ISG urged shareholders to take no action and to "ignore the offer".
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
ISG.L