System1 Group PLC (AIM:SYS1) has repeated its rejection of Brave Bison (AIM:BBSN) takeover approach after the offer document left the terms unchanged and the implied discount to System1’s market price widened.
Brave Bison (AIM:BBSN) is offering 2.04 of its shares plus 135p cash for each System1 share. Based on Brave Bison’s 84.5p closing price on 26 August, the proposal values System1 shares at 307.4p, an 8.2% discount to System1’s closing price of 335p.
The alternative all-share proposal of 3.36 Brave Bison shares for each System1 share implies a value of 283.9p, representing a 15.2% discount. When the revised terms were announced in July, the respective discounts were 6.8% and 10.9%.
System1 said its board “continues to unanimously and unequivocally reject” both proposals and also noted that Brave Bison has secured no irrevocable undertakings or letters of intent from System1 shareholders. Shareholders were advised to take no action while the company prepares its formal offeree board circular, which will also include the trading update previously due in August.
