MWB said today its majority-owned company, MWB Business Exchange, recommended its buyout offer, despite receiving a far higher indicative cash offer by serviced office rival Regus.
MWB, which has a 72.3% stake in Business Exchange, said Business Exchange had received an indicative cash offer of 92.36p a share from Regus, which valued it at £60m. This compares with MWB’s cash-and-share offer, made on April 28, which values Business Exchange at nearly half this amount.
Business Exchange said Regus’s indicative offer was subject to two pre-conditions. The first was that its independent directors withdraw their recommendation of the MWB acquisition and unanimously recommend Regus’s indicative offer.
Business Exchange said its independent directors “would not recommend a cash sale of Business Exchange at the indicative offer price as, in their opinion, a cash offer at this price would not reflect the underlying fundamental value of Business Exchange in the long term”.
The second pre-condition was that “in due course” MWB must give its support. Business Exchange said that consultation by the independent directors with MWB revealed that MWB did not support Regus’s indicative offer and, therefore, that Regus offer “was not capable of being delivered”.