News Column

Perform Board To Recommend Shareholders Reject Access Industries Offer

September 3, 2014

Hana Stewart-Smith

LONDON (Alliance News) - The independent directors of Perform Group PLC Wednesday said they will recommend that shareholders reject Access Industries Group's offer to buy up the remainder of Perform that it does not already own, as it "undervalues the company and its prospects".

Perform's directors said that they do not plan to accept the final cash offer from Access in regards to their own 10.88% stake.

The board said it will write to shareholders with its detailed views on the offer after a formal offer document has been issued by Access. In the meantime it has strongly urged shareholders to take no action.

Perform said it is being advised by Rothschild in regards to the offer.

Access said Monday that its AI PG LLC unit will bid 260 pence per share for the 57.5% of the company it does not already own. The bid is a 28% premium on the closing price of 203.8 pence per share in Perform last Friday and is a premium of 22% on the average price of Perform shares in the month prior to the offer being made.

Shares in Perform were trading up 0.04% at 258.10 pence Wednesday morning.

Access said the bid was final and would not be increased. The deal values the remaining stake in Perform that Access is buying at GBP410.3 million and the entire issued share capital of Perform at around GBP701.6 million.

Access Industries is a privately owned American conglomerate founded by Ukrainian-born American businessman Len Blavatnik, which owns record company Warner Music Group.

Last Friday, Perform said it was on track for its revenue and adjusted earnings expectations for the full-year as it stressed that its cost reduction plan is on track, with benefits to come through in the second half. It saw a widened loss in the half-year to end-June on higher costs, including costs relating to its acquisition of Opta Sports Data Ltd and restructuring expenses related to its cost-reduction programme.

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Source: Alliance News

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