AIM-listed digital media and martech company Brave Bison, backed by brothers Oli and Theo Green, has been given the cold shoulder after opening talks with Mission Group about a potential takeover.
The company, which last year bought Social Chain, the digital and influencer marketing company founded by Dragon’s Den star and Diary of a CEO podcaster Steven Bartlett, had proposed an all-share takeover offer for Mission, which is also listed on AIM.
Brave Bison opened discussions with Mission’s board and major institutional shareholders to gain support for the deal but in a statement Mission said that “following consultation with financial and legal advisers, [we have] unanimously rejected the possible offer which [we] believe to be opportunistic and significantly undervalues the group and its prospects”.
It said in March it had received “a number” of takeover bids without naming the bidders.
The statement added: “The possible offer is earnings dilutive for Mission’s shareholders. Brave Bison anticipate that Mission’s shareholders would enjoy more value from the combination based on a re-rating of the proposed combined group. There is no certainty of a re-rating.”
Brave Bison’s board believed that the merged company would be a “more attractive investment opportunity” for institutional shareholders compared to either company on its own, potentially trading at a higher earnings multiple.
If the deal had gone through, the combined entity would have had revenue of around £120m and adjusted earnings of £14m for the fiscal year 2023. The Sunday Times reported the prospective bid would be at least £22m.
As of December 2023, Mission had outstanding debts of £30m, consisting of bank loans, acquisition commitments, and overdue payments. At the time, it said its losses had widened to £10.7m but it has embarked on a turnaround plan, which included “significant one-off headcount reductions” in late in 2023,
Mission owns 19 agencies in total, including Krow, Story, Soul, Livity, Bray Leino and Turbine, with clients including Halfords, LVMH, Googel, MacMillan, Ovo Energy, Snug, Bupa, Porsche, and Molson Coors. It claims to have more than 1,100 staff across 28 locations.
Brave Bison, meanwhile, counts New Balance, Currys and Asus among its client and insists its net cash position of £7m would strengthen Mission’s financial position, improving its balance sheet and debt ratios.
Oliver Green (pictured, left), Theo Green (right) and Philippa Norridge joined Brave Bison as executives in 2020, having made a strategic investment in the company in 2019; Lord Ashcroft is also a major investor.
Executive chairman Oliver Green had said: “The combination of Brave Bison and Mission has the potential to deliver compelling value for both company’s shareholders, clients and employees. We look forward to engaging with the Board of Mission to discuss the merits of our proposal further.”
The company’s acquisition spree started with social publisher and social media marketing company The Hook, followed by digital commerce companies Best Response Media and Greenlight Commerce.
It bought Social Chain in February, although Steven Bartlett stepped down in 2020. Last week, the Green brothers also backed the launch of Tangent’s AI division to the tune of £5m.
Brave Bison has yet to comment on the rejection of the bid.
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