Sports Media Group Perform's Shares Surge 26% Following Offer From Access Industries
Shares in sports media group Perform surged 26% on Monday after conglomerate Access Industries "made an offer to take the FTSE 250 company private" at a valuation of about £702M ($1.17B), according to Robert Cookson of the FINANCIAL TIMES. Access Industries, which is controlled by U.S. billionaire Len Blavatnik, "already owns" 42.5% of the company. It said it would make a "final cash offer of 260p a share for the remaining shares" -- representing a premium of almost 28% "over their closing price last Friday." If Access increases its stake in Perform to more than 75%, "it will delist the company from the London Stock Exchange." Perform was informed of the offer on Sunday. In a "brief statement" on Monday, the company said that it "urges shareholders to take no action at this time." The group added that it was focused on "delivering significant value for all shareholders" and would make a "further announcement in due course." Access, which is "being advised by Credit Suisse, said the offer price of 260p was 'final and will not be increased'" (FT, 9/1). REUTERS' Holton & Weir reported the offer matches the price "at which the company was floated on the London stock market" in '11. That means "those who bought stock three years ago would get their money back after enduring sharp swings in the share price." Access CEO Lincoln Benet said, "We continue to have confidence in Perform's management and in the company's future potential." In an initial response, Perform advised shareholders to "take no action for the moment." Perform said in a statement, "The board reiterates its confidence in Perform Group's standalone strategy and growth prospects as detailed in last Friday's interim results statement." Perform said on Friday that it was "on track to meet revenue and profit targets for the year" (REUTERS, 9/1).