LONDON (Alliance News) - Avesco Group PLC Thursday said it has agreed terms for a recommended cash offer from Pennsylvania-based events production company NEP Group Inc which values Avesco at around GBP124 million.
Avesco owns live events business Creative Technology and UK-based events services company mclcreate.
NEP Group has made an offer at 650 pence per share, which Avesco noted is an 125% premium to its closing price of 289 pence per share Wednesday.
Shares in Avesco more than doubled following the news, trading up at 625 pence Thursday.
Avesco's directors have unanimously approved the acquisition and intend to recommend its shareholders vote in favour of the deal at its annual general meeting. They have irrevocably undertaken to do so in respect to their own holdings of around 6.4 million shares, representing a 33.4% stake in the company.
Additionally, NEP has also received irrevocable undertakings from shareholders of a total of 4.9 million shares, or an around 25.5% stake in the company, meaning it has received total irrevocable undertakings in respect to around 11.2 million shares, or a 58.9% stake.
"Since the first public listing of the Avesco Group in 1984, Avesco has achieved great success developing into a global live events business and attracting staff of the highest quality, factors which are both reflected in the substantial cash premium being offered to shareholders today," said Founder and Executive Chairman Richard Murray in a statement.
"Avesco's recently completed disposals have left the business in a strong position to continue to move forwards. NEP's complementary activities and extensive resources will provide Avesco with the platform to continue to accelerate its ambitions and represents a positive development for both customers and employees," Murray added.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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