Although we dont believe in timing the market or panicking over every stock fluctuation, understanding how a business is performing, competing and changing is vital to sensible investment.
What: Shares of Perform Group (LSE: PER) rose by 25% to 257p in early trade, after the US investment group Access Industries declared its intention to acquire all the shares in the FTSE 250 company it did not already own. The 260p per share offer representing a premium of 18% over Performs Friday closing price is final and thereforewill not be increased.
So what: Perform Group is a media company thatowns the digital rights to more than 200 sports leagues, tournaments and events. The companys business activities include content distribution, on-demand video subscriptions and advertising. The bid, made by AI PG LLC, part of Access Industries Group, values Perform at around 702m.
PTV, which is also owned by Access Industries, presently owns 43% of Perform. Access Industries has been a supporter of Perform from the start and we continue to have confidence in Performs management and in the companys future potential, said Access Industries CEO, Lincoln Benet.
Now what: Perform shareholders will be entitled to receive the full 260p per share bid price in cash. The shares lost more than half their value in December following a profit warning. Investors who bought at the bottom may decide to exit to realise significant gains.
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Mark Stones has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
