Wellcom Group is under a takeover offer from South Korean marketing group Innocean Worldwide, valuing the Australian advertising creative production company at $265.8 million.
The directors of Wellcom unanimously recommend the $6.70 a share cash offer, a 27.6% premium to yesterday's close of $5.25 and well ahead of the one year high of $5.70.
Wayne Sidwell, Wellcom's chairman, says Innocean's offer reflects Wellcom's leading market position and the strength of its underlying businesses.
"It will be business as usual under Innocean's ownership and I am looking forward to continuing with Wellcom as an executive and shareholder," he says.
"Innocean's ownership will provide a great opportunity for Wellcom's businesses and people by offering a larger geographical footprint and new opportunities in complementary business channels.”
Under the takeover deal, Sidwell will retain his 15% of the company.
In February Wellcom announced a 5% rise in first half revenue to $79.95 million. After tax profit was up 11% to $6.6 million.
Wellcom, founded in 2000 and headquartered in Melbourne, services internationally brands from its operations in Australia, New Zealand, the UK, the US, Malaysia and India.
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