Broadcaster SCA says the takeover by competitor ARN, backed by private equity firm Anchorage Capital Partners, is complex and will take time to assess.
“We are not surprised that potential acquirers are interested in SCA’s assets,” says chairman Rob Murray.
He told the shareholders at the AGM today that equity markets had for some time undervalued SCA, both as it is today but also as a growth opportunity in digital audio, and in audio app LiSTNR.
ARN is offering SCA shareholders 94 cents per share, a substantial premium to the previous closing price of 73 cents.The offer is made up of 0.753 of an ARN share and 29.6 cents cash for each SCA share.
Insiders told AdNews that staff were yesterday given a briefing, substantially the same as given today at the AGM, on the state of play with the takeover bid
“The proposal we have received from ARN and Anchorage is complex and highly conditional,” Murray told the AGM.
“Our board and executive team are assessing it carefully to work out whether it could create additional value for our shareholders and whether the proposed terms are in our shareholders’ best interests.
“Since receiving the proposal last week, we have set up sub-committees of our board and management to consider the proposal, and our financial and legal advisers have held initial discussions with the consortium’s advisers.
“I understand many of you will be interested to hear more about our progress in assessing the proposal.
“However, we remain at an early stage and there is nothing further we can tell you today.
“We will, of course, update our shareholders if there are material developments in our discussions with the Consortium.
“In the meantime, let me assure you that our focus in considering the proposal and in continuing to operate our business is on growing value for our shareholders.”
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