Audioboom (AIM:BOOM) Group PLC (LON:BOOM) has rejected the bid approach from All Active Asset Capital (AAA), citing several drawbacks, including valuation grounds.
AAA announced on Monday it had the support of shareholders representing 26.4% of Audioboom (AIM:BOOM)’s share capital for an offer comprising 12.5 new AAA shares plus 200p cash, valuing Audioboom shares (at the time of that announcement) at 1,200p each.
Audioboom shares were up 2.2% to 950p this morning, some way below the proposed offer price, despite which the independent directors of Audioboom and its advisers maintain that the terms significantly undervalue “the business, its progress and potential to capitalise on its market position to generate value for the company's shareholders”.
The independent directors also have doubts about the wisdom of accepting AAA shares as part of the offer when trading in these shares is currently suspended, with the listing set to be cancelled at the end of this month if the suspension of trading continues.
“On the basis of the very limited information provided by AAA to the independent directors to date, the independent directors do not believe there to be any compelling logic to justify a combination of the two businesses,” the Audioboom statement said.
Audioboom shareholders have been advised by the independent directors to sit tight.
Audioboom makes $50.73 per thousand downloads.
That's pretty sweet. If we were making that, we'd be raking in upwards of $13.27 an episode.
(Source: @Podnews)
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