MISSION Group (LSE:TMG), the marketing firm, has had its largest shareholder come out in support of the company’s decision to reject an all-share bid from its industry rival Brave Bison (AIM:BBSN).
DBAY Advisors Limited, the investment manager of Logistics Development Group (LDG), said it believed the offer from Brave Bison (AIM:BBSN) undervalued Mission and its prospects, a company statement revealed
LDG owns 10.74% of the AIM-listed company, making it the group’s largest shareholder.
DBAY advisors appreciated that an all-cash offer at a significant premium to the group’s current market value is attractive given the limited trading volume of the company.
However, it believes the offer “is highly unattractive” and recommends to LDG’s board that it should not take any action concerning the bid.
Brave Bison (AIM:BBSN)’s proposed deal valued MISSION shares at 29.04p apiece, compared to its closing price of 22.7p at the end of last week.
MISSION said it received the unsolicited conditional proposal regarding a possible offer on April 29 and unanimously rejected it last Wednesday, May 8.
Management said they rejected the deal as it was “opportunistic and significantly undervalues the group and its prospects" as well as being dilutive to its shareholders.