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M&C Saatchi PLC - London-based advertising agency - Unanimously recommends that M&C Saatchi shareholders reject an offer by AdvancedAdvt Ltd by taking no action in relation to it. Explains that the company has a strong standalone future with record results for 2021, and strong results for the first half of 2022. Further, it believes that the original offer price is to low and fails to reflect its growth and opportunities. Adds that the offer has a high risk of damaging its culture, triggering a talent exodus, and could potentially lead to revenue loss and value destruction.
In the six months to June 30, it generated revenue of £221.7 million and a pretax profit of £305,000.
M&C has been the object of a takeover battle between AdvancedAdvT and AIM-listed Next Fifteen Communications Group PLC. AdvancedAdvT is M&C's largest shareholder and it is chaired by Vin Murria, a former member of M&C's board. Under AdvancedAdvT's offer, shareholders in M&C Saatchi would receive 2.043 new shares in AdvancedAdvT and 40p in cash, or receive 2.530 new AdvancedAdvT shares.
Current stock price: 154.42 pence
12-month change: up 1.9%
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