Global Radio's second attempt at buying GCap Media has been rejected today. The price of 202 pence per share, although an improvement on the initial 190 pence per share offer, was deemed too low and significantly undervalues the Company, GCap said this morning.
The second offer was received by GCap Media yesterday (Feb 28th) and was subject to a number of conditions by Global including due diligence and finalisation of financing facilities.
GCap said they believe that this revised proposal significantly undervalues the Company because it does not reflect the value that would be created by implementing the strategy of the new chief executive, Fru Hazlitt, outlined in the announcement of 11 February.
"The Board believes that this does not reflect that these are unique assets for any acquirer and fails to take account of the synergies that are likely to be available from consolidation. The Board also believes that the level of conditionality attached to the proposal is unacceptable since it does not offer a sufficient degree of certainty of successful completion." GCap said in a statement.
8:30am Update: GCap's share price dropped 1.2 per cent to 189 pence per share since the announcement.