Investment group in Perform takeover bid
Access Industries Group, which holds 42.5% stake in Perform, tables offer to take complete control of the sports rights business
Perform Group minority shareholder Access Industries this morning made a bid to assume full control of the sports data business in a deal which values the company at £701.6m.
The investment group, which currently holds a 42.5% stake in London-listed Perform, has tabled an offer of 260p for each remaining share with the bid amounting to a total cash consideration of approximately £410.3m.
The 260p valuation represents a premium of approximately 28% on Friday’s closing share price of 203.8p and roughly 22% higher than Perform’s average closing price during August. Following this morning’s news, Perform’s share price jumped 26% to 257p.
The takeover bid, which has been made through Access Industries’ subsidiary AI PG, was said to be a final offer was final and would not be increased.
In a note to the market this morning Perform, which on Friday announced H1 profits of £15.6m, confirmed it was in receipt of the offer but called on shareholders to “take no action at this time”.
“The Board reiterates its confidence in Perform Group’s standalone strategy and growth prospects as detailed in last Friday’s Interim Results statement,” the statement read.
According to Access Industries, there are no plans to make any material changes to the make-up of the Perform’s management and attached “great importance to the skills, expertise and experience” of its existing employees.
“Access Industries has been a supporter of Perform from the start and we continue to have confidence in Perform’s management and in the company’s future potential,” Lincoln Benet, CEO of Access Industries, said.
“Consequently, a member of our group is launching an offer at 260p per share, a 27.6% 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.”
Perform has enjoyed mixed fortunes over the past couple of years. Last summer it completed the acquisition of leading sports data company Opta for £40m, however, late last year was forced to issue a profit warning which saw its shares crash to 180p and embark on a cost-cutting exercise.
Access Industries is a privately-held industrial group with holdings worldwide and whose chairman and founder Len Blavatnik is its controlling beneficial owner.
The group focuses on investments in natural resources, chemicals, media, telecommunications and real estate and holds a significant stake in Warner Music Group, one of the world’s leading music companies.