LONDON, UK: MISSION Group plc has firmly rejected an unsolicited takeover proposal from Brave Bison Group plc, citing the offer as opportunistic and significantly undervaluing the company. The offer, made on April 29, 2024, suggested an all-share exchange ratio of 11.5 Brave Bison shares for each MISSION share, valuing each MISSION share at approximately 29 pence.
The MISSION Board unanimously dismissed the offer on May 8, 2024, after consulting with financial and legal advisers. They argued that the offer did not reflect the true value of MISSION, especially considering the company’s 62.1% share price increase since October 23, 2023. The Board also highlighted that MISSION’s contributions to net revenue, adjusted EBITDA, and pre-tax profits were significantly higher than those of Brave Bison, yet the offer would only give MISSION shareholders about 45% ownership in the combined entity.
Furthermore, the Board expressed concerns over potential dilution of MISSION’s shareholder interests due to a proposed additional equity fundraising by Brave Bison. The Board is also considering asset disposals to reduce debt and remains open to proposals that would enhance shareholder value.
Brave Bison must clarify its intentions by June 9, 2024, as per the City Code on Takeovers and Mergers. Meanwhile, MISSION shareholders are advised to refrain from taking any action.
The financial footnotes reveal that the valuation and ownership percentages are based on the last trading day’s share prices before the offer, and MISSION’s net debts and liabilities were approximately £25.2 million as of December 31, 2023, and £26.8 million as of April 30, 2024.