29th Sep 2014 07:40
LONDON (Alliance News) - Stamp collecting company Stanley Gibbons Group PLC and Mallett PLC Monday said they have reached a deal which will see Stanley Gibbons buy the antique furniture dealer Mallett for GBP8.6 million in cash.
In a joint statement Monday, the companies said the offer is for 60 pence per Mallett share in cash.
Stanley Gibbons shares were trading 0.2% lower Monday morning at 279.40 pence, while Mallett shares surged 22% to 59.00 pence.
Stanley Gibbons said it will acquire Mallet via its wholly owned subsidiary The Fine Art Auction Group Ltd.
It said The Fine Art Auction Group has received irrevocable undertakings to accept the offer from around 74.3% of Mallett's existing issued share capital, and Mallett is recommending its shareholders accept the deal, stating its considers the terms of the offer to be "fair and reasonable".
"The Mallett board believes that Mallett's business would benefit from becoming part of a larger group with resources to support its development. In addition, the offer provides Mallett shareholders with the opportunity to realise their investment in cash for a fair price now," said Mallett Non-Executive Chairman Lord Daresbury in a statement.
Only last month, Mallett said weakness in the US led to a decline in revenue and a first-half loss, and said it was doubtful its results for 2014 will be an improvement on the earnings reported in 2013. It said its chances of meeting full-year expectations were dependant on whether it can make a number of "high value" sales in a market it said is currently both fragile and unpredictable.
Stamp collecting firm Stanley Gibbons, meanwhile, in is the process of launching its online marketplace, and said the Mallett acquisition will broaden its portfolio in line with its growth strategy.
"We are delighted that the board of Mallett has recommended the offer, a logical and affordable next step for us to acquire a valuable brand and relevant assets. The Mallett business will expand Stanley Gibbons' expertise into an adjacent collectibles area, drive significant cross-selling opportunities across the combined businesses and build a stronger auction platform in the collectibles marketplace," said Stanley Gibbons Chairman Martin Bralsford in the statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
SGI.L