Digital sports media company Perform has urged its shareholders to reject an offer from Access Industries to acquire the whole of the issued share capital not currently owned by the privately-held investment group.
Access on Monday made a final cash offer of 260p per share for Perform, which would value the company at £701.6m (€881.5m/$1.16bn).
Access said the bid was being made by AI PG LLC, which is part of the Access Industries Group. PVT, also part of the Access Industries Group, already owns around 42.5 per cent of Perform.
The offer of 260p per share compares to the level of 203.8p Perform’s share price closed at on Friday. At their peak, the shares hit 592p last year while news of the offer saw the price reach 257.5p this afternoon.
“We continue to have confidence in Perform’s management and in the company's future potential,” Lincoln Benet, chief executive of Access Industries, said. “Consequently, a member of our group is launching an offer at 260 pence per share, a 27.6-per-cent premium to the current price, to allow those shareholders who seek an exit to do so at a significant premium to the current trading level.”
In December, Perform’s market capitalisation slumped by more than 50 per cent in a single trading session after the company said that annual earnings would be significantly below expectations.
Perform on Friday released its financial results for the six months ending June 30. It outlined year-on-year revenue growth of 29 per cent to £118.8m, adding that it is “on track” to deliver full year revenue and adjusted EBITDA in line with the board's expectations.
Commenting on the Access offer, Perform said: “The board reiterates its confidence in Perform Group's standalone strategy and growth prospects as detailed in last Friday's interim results statement. The board remains focussed on delivering significant value for all shareholders. The board urges shareholders to take no action at this time.”