17th Feb 2016 15:58
LONDON (Alliance News) - Cathexis UK Holdings Ltd on Wednesday said its mandatory offer for ISG PLC is now unconditional in all respects, after the construction services company decided to change its position and recommend the bid.
Nevertheless, ISG is still of the view that the 171.00 pence per share offer, which values the company at around GBP84.6 million, undervalues the business and its prospects.
However, due to the significant shareholding Cathexis and related parties would have in the business should the offer fail to become unconditional and lapse, which would be around 48%, ISG said it now thinks accepting the offer is in the best interests of shareholders.
It said that, given the large minority holding Cathexis would have in the business, it would make it "difficult and unlikely" for other shareholders to have influence over any votes on company business, adding Cathexis may take actions which could be to the "potential detriment" of ISG shareholders.
Later, Cathexis said it now controls about 63% of ISG's shares, through owning shares or valid acceptances of the bid from other shareholders.
Shares in ISG were down 1.2% at 170.60p on Wednesday afternoon.
By Sam Unsted; [email protected]; @SamUAtAlliance
Update by Samuel Agini; [email protected]; @samuelagini
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