Inspired PLC Receives Recommended Cash Offer, Set to Delist
Why we think this is very bad
The recommended cash offer by Intrepid Bidco Limited to acquire Inspired PLC and subsequently delist the company is very negative for remaining minority shareholders. While the offer price represents a significant premium, the delisting and re-registration of Inspired as a private company will significantly reduce the liquidity and marketability of shares held by minority investors. Bidco also plans to suspend ordinary course dividends and increase the company's debt levels, which are further concerns for shareholders.
Key Points
- Recommended cash offer of 81 pence per share, valuing Inspired at £183.6 million
- Offer represents a 32.8% premium to the undisturbed closing price
- Inspired Board unanimously intends to recommend the offer to shareholders
- Bidco plans to delist and re-register Inspired as a private company if successful
- Bidco intends to suspend ordinary course dividends and increase debt levels
Summary
Intrepid Bidco Limited has made a recommended cash offer to acquire the entire issued and to be issued share capital of Inspired PLC for 81 pence per share, valuing the company at approximately £183.6 million on a fully diluted basis. The offer represents a premium of 32.8% to the closing price on the undisturbed date. The Inspired Board unanimously intends to recommend the offer to shareholders. If successful, Bidco plans to delist and re-register Inspired as a private company, which will significantly reduce the liquidity and marketability of shares held by minority investors. Bidco also intends to suspend ordinary course dividends and increase the company's debt levels.