The ISG board has made a forthright plea to its shareholders urging them to reject a takeover bid from Texan raider Cathexis.
Having earlier this month rejected the 143p per share offer, the board today told shareholders that the bid does not represent “an adequate premium for control of your company”.
In a statement to the City, the board further claimed that shareholder dividends would be at risk if Cathexis gained control of ISG.
It said: “Cathexis’ inadequate offer fails to reflect the recent growth and future potential of ISG’s core fit-out businesses.
“Cathexis is an astute investor which has bought its ISG shares at times when the share price has been low and now sees further value in your ISG shares at your expense.
“Cathexis is not paying an adequate premium for control of your company and your dividend is at risk if it seizes control of your company.”
ISG chairman Roy Dantzic also urged “shareholders not to give away your value in ISG at today’s inadequate offer price”.
The 143p per share offer valued the company at only marginally above the 141.8p per share at which it was trading at close of business last Friday (18 December).
It was the second time this year that Cathexis, which holds a 29.5 per cent stake in ISG, had made a play for the fit-out specialist.
The buy-out firm approached ISG in June with an offer that was also rejected by the board, which said it “significantly undervalued the company”.
The bid comes at the end of a turbulent year for ISG, with the group reporting a £27.8m loss for 2014/15 in September, followed by a £5m profit warning earlier this month which led to a 32.1 per cent fall in its share price.