ISG has once again hit back at US raider Cathexis, urging its shareholders to “take no action” after the bidder extended its takeover offer.
In a trading update this morning, the contractor said the limited uptake for the 143p per share bid was a “clear indication” that the shareholders agreed with the board’s continued rejection of the offer.
“All ISG shareholders are advised to continue to take no action whatsoever and to ignore the offer,” ISG said.
Cathexis already owns 30 per cent of the fit-out specialist and has so far won support from shareholders representing just 1.7 per cent of the remaining stock.
Yesterday, the investor admitted that the uptake had been limited and extended the offer period to 1 February.
Cathexis launched the bid, which values the company at £71m, last November. It was its second takeover attempt in six months.
This is the third time ISG has urged shareholders to reject the offer, previously describing the buyout firm as “an astute investor” that had raised its stake when the share price had been low.
Today’s announcement also included a trading update ahead of ISG’s interim results, which will be published on 8 March.
The contractor warned that the cost to close certain remaining contacts in its UK construction business, which it entered into during 2011 and 2013, were expected to rise by an “offsetting amount”.
ISG added that the “turnaround plan” for this division was progressing and that all but three of the 360 contracts it entered into during 2011 and 2013 had now completed.
Its order book as at 31 December 2015 was £1.1bn.