Bidder Cathexis extends deadline for ISG shareholders to sign up to offer
ISG has said there is a 鈥渃lear indication鈥� that shareholders are following the company鈥檚 board in rejecting a takeover bid by US investor Cathexis, after the offer period was extended due to a low level of acceptances.
Cathexis, which is offering 拢1.43 per share, a 17% premium on ISG鈥檚 closing share price on 19 December 2015, valuing the company at 拢71m - said on Tuesday that as of 1pm Monday it had only received acceptances for 1.58% (785,366 ISG shares) of ISG鈥檚 current issued share capital. Cathexis has extended the deadline for shareholders to show support until 1pm on 25 January.
The board of ISG responded on Tuesday by saying it noted the 鈥渧ery low level鈥� of acceptances of the offer, which it said was 鈥渁 clear indication that shareholders agree with the board in its rejection of the offer.鈥�
The firm has already written to shareholders to set out their reasons for rejecting the 鈥渋nadequate鈥� offer and urging shareholders to follow them.
ISG鈥檚 board stated the offer 鈥渇ails to reflect the recent growth and future potential of ISG鈥檚 core fit-out businesses鈥�.
It also accused Cathexis of being an 鈥渁stute investor which has bought its ISG shares at times when the share price has been low and now sees further value in your ISG shares at your expense鈥�. ISG鈥檚 board added: 鈥淐athexis is not paying an adequate premium for control of your company and your dividend is at risk if it seizes control of your company,鈥� ISG鈥檚 board added.
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