The board of ISG has unanimously rejected the takeover offer from US investor Cathexis
ISG has confirmed its unanimous rejection of US investor Cathexis鈥� offer saying it 鈥渕aterially undervalues the company鈥�.
Cathexis made an offer of 拢1.43 per share on 19 December, a 17% premium on ISG鈥檚 closing share price at the time, valuing the company at 拢71m.
The board of ISG - led by chief executive David Lawther (pictured) - has set out it main reasons for rejecting the 鈥渋nadequate鈥� offer stating that it 鈥渇ails to reflect the recent growth and future potential of ISG鈥檚 core fit-out businesses鈥�.
The board 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�.
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.
ISG鈥檚 response comes after Cathexis circulated a full offer document to its shareholders. The ISG board said it will be writing to shareholders to explain these principal reasons for the rejection of the offer and advised shareholders 鈥渢o take no action whatsoever and to ignore the offer鈥�.
ISG chairman Roy Dantzic said: 鈥淐athexis is an astute investor which has shrewdly built up its shareholding in ISG. The Board urges shareholders not to give away your value in ISG at today鈥檚 inadequate offer price.鈥�
Cathexis already owns around 30% of ISG鈥檚 shares and intends to take the firm private and has argued that 鈥渄ue to the size of the company, the nature of its business, the cyclicality of its markets and the volatility of its share price and trading performance鈥� it is better suited to private ownership.
.
No comments yet