(Alliance News) - Public relations firm Porta Communications PLC said after the market close Tuesday it had agreed a GBP4.5 million all share takeover by Italian peer SEC SpA.
Porta shareholders will receive one new share in London-listed SEC for every 88.496 Porta shares held, valuing each shares at approximately 0.88 pence each. Shares in Porta closed 6.2% lower at 0.42 pence in London on Tuesday, SEC down 7.7% at 72.00p.
The deal will see Porta shareholders holding a 26% stake in the combined company. Of the remainder, Retro Grand Ltd will hold 44% of the combined group following the conversion of a GBP5.7 million convertible loan extended to Porta in April.
"The bringing together of these two organisations will create a strategic communications group of scale that has global reach but, importantly, key local market expertise," Porta Chair John Foley said.
SEC Chief Executive Officer Fiorwnzo Tagliabue added: "The merger of Porta and SEC will benefit both SEC and its existing global development plan, growing the business and expanding commercial reach and knowledge. The Porta business complements the existing SEC footprint and reach."
"I believe this combination has a solid basis derived from nearly two and a half years of commercial partnership between SEC and Porta with the potential for further synergies," Tagliabue added. "The combined group will be better equipped to compete globally, with an expanded commercial and technological product base to deliver added value strategic advice to our clients."