AdvancedAdvT Limited, the special purpose acquisition vehicle, said a proposed improved offer for M&C Saatchi PLC (AIM:SAA) has been rejected by the advertising agency.
AdvancedAdvT has made two new proposals to Saatchi, one of which is an all-share offer while the other is a cash plus shares proposition.
The investment company, which is chaired by Vin Murria, who is deputy chair of M&C Saatchi, asked its quarry to choose between an offer of 2.245 AdvancedAdvT shares for every M&C Saatchi share or 1.633 AdvancedAdvT share plus 40p cash for each Saatchi share.
The independent directors of M&C Saatchi rejected both proposals.
READ AdvancedAdvT envisages all-share offer for M&C Saatchi PLC
The all-share offer, a 20.7% improvement on the 1.86 shares per Saatchi share originally proposed in AdvancedAdvT’s sighting shot, would result in Saatchi shareholders owning about 65% of the merged company.
The shares plus cash offer would lead to Saatchi shareholders owning about 57% of the enlarged company, excluding the 12mln Saatchi shares AdvancedAdvT already owns.
AdvancedAdvT said its proposed board structure of the merged company would see Moray MacLennan staying on as Saatchi chief executive director, the addition of an executive director responsible for Data, Analytics & Digital Transformation, a chief financial officer to replace Mickey Kalifa who announced last week his intention to quit the Saatchi board and AdvancedAdvT’s Gavin Hugill installed as chief operating officer.
The rest of the board would comprise Vin Murria as chair and a number of the current non-executive directors from the current boards of AdvancedAdvT and M&C Saatchi.
It is AdvancedAdvT’s intention should it succeed in acquiring M&C Saatchi for the enlarged board to comprise a majority of independent directors.
M&C Saatchi rejected the improved terms last night.