12th Sep 2014 12:32
LONDON (Alliance News) - The board of Motivcom PLC said Friday that it unanimously recommends shareholders vote in favour of an offer from Sodexo Motivation Solutions UK Ltd, a subsidiary of France based Sodexo SA, that values it at GBP41 million.
Motivcom is a business services group which offers incentives and loyalty expertise.
The offer is for 148 pence per Motivcom share in cash, representing a 20.8% premium to Motivcom's closing share price of 122.5 pence Thursday, it said.
Shares in Motivcom were trading up 15.1% at 141.00 pence Friday afternoon.
The directors of Motivcom said they consider that the terms of the offer are fair and reasonable, and are in the best interests of Motivcom shareholders. They have irrevocably undertaken to vote in favour of the deal in respect to their entire holdings, amounting to around 59.75% of Motivcom's issued shares.
Sodexo will fund the acquisition through its existing cash resources.
Motivcom has also agreed to sell its subsidiary Zibrant Ltd to Zebra 1234 Ltd, a company owned by director and 10.78% Motivcom shareholder Nigel Cooper, for GBP2.9 million.
"Sodexo's global strength in the Benefits and Rewards area coupled with an underweight presence in the Incentives and Recognition market in the UK results in an excellent strategic fit for Motivcom's incentives and loyalty business," said Chairman Colin Lloyd in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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