Betfair and CVC terminate takeover talks
Full statement here – https://www.betangel.com/forum/viewtopic.php?f=35&t=2623&start=266
Looks like I was right to sell into the market. It will be interesting to see what price the shares open at this morning. Highlights of the statement: –
Following the announcement of the trading and strategy update, the Board received a revised proposal from the Co-offerors (the “Revised Proposal”) on the evening of Friday, 10 May 2013. The Revised Proposal valued each Betfair share at 920 pence per share in cash. On the morning of Saturday, 11 May 2013 and the Chairman sought to understand whether the Co-offerors would be making a further revised proposal.
On the evening of Sunday, 12 May 2013, the Board received a further revised proposal from the Co-offerors, which was described as a “full and final offer” (the “Further Revised Proposal”). The Further Revised Proposal valued each Betfair share at 950 pence per share in cash. The Further Revised Proposal remained conditional on, inter alia, completion of due diligence, arrangement of appropriate financing and receipt of a recommendation from the Board.
The Board reviewed the Further Revised Proposal with its advisers and rejected it on the basis that it undervalues the Company and its attractive prospects. The Chairman communicated this decision to the Co-offerors on Sunday evening but indicated that, if the Co-Offerors were willing to further improve their proposal, the Board would consider further discussions. The Co-offerors indicated a willingness to reconsider their proposal in conjunction with discussions regarding their business plan for Betfair. During these discussions it became clear that it would not be possible to agree the terms of any proposal in conjunction with a business plan that was deliverable. In light of this, the parties terminated discussions.
It will be interesting to see where the share price settles and how trading pans out from here. I guess some of the longer term shareholders advised the board that they needed more to part with their shares. But I’m happy having sold at the top of recent price activity, but then I was in at a much lower price. If we start plumbing those depths again then I may get interested in becoming a buyer.
Category: Betfair
