Mission Group is considering an increased £32.3m takeover offer from rival Brave Bison

Digital marketing heavyweight Mission Group is eyeing an increased takeover bid of £32.3 million from industry rival Brave Bison, but said the higher offer is unlikely to gain support.

The company, which is behind the Social Chain agency founded by Dragons’ Den star Steven Bartlett, made an improved offer of around 35.1 pence per share for Mission on May 25, after the original pitch was rejected. The new proposal proposes to give Mission shareholders an approximately 50% stake in the newly created company and offer a partial cash alternative of up to 50% of the offering price.

This marks an increase from Brave Bison’s initial all-share offer, which valued Mission at around £27 million or about 29 cents per share. But Mission Group has cast doubt on the suitability of the new offer, saying: “The board’s preliminary position is that the revised potential offer does not reflect Mission’s contribution to the proposed combined group.”

They also said they are considering the revised offer with their advisors and will inform the market if necessary. Previously, Mission bosses rejected the initial offer, saying it was “opportunistic and significantly undervalued the group and its prospects”.

Brave Bison has a June 9 deadline to strengthen its bid for Mission Group or withdraw, according to City Takeover Panel rules. However, it made it clear on Monday that without an extension to this deadline it is unlikely the potential deal can move forward. a constructive discussion between the parties”.

The company, which has the financial backing of billionaire Lord Michael Ashcroft, a former deputy leader of the Conservative Party who has a more than 20% stake in Brave Bison, is eyeing a strategic takeover. Mission Group, with more than 1,100 employees, is known for creating digital marketing content for major brands such as Google, Porsche, Kinder and Speedo.

When Brave Bison first hinted at its bidding intentions last month, it touted that the merger with Mission Group would create one of Britain’s most formidable independent digital marketing agencies, listed on Aim, with a combined turnover of almost £120 million and underlying profits in the region of £14 million.

Should the acquisition go through, Brave Bison plans to have the Green brothers, Oliver and Theo, who currently serve as Executive Chairman and Chief Growth Officer respectively, lead the expanded entity, following their acquisition of Brave Bison in 2020.

With operations spread across nine countries, Brave Bison has previously argued that the acquisition of Mission Group would not only strengthen the latter’s balance sheet but also meet its financial obligations, including loans and “certain overdue creditors” amounting to approximately £30 million , which must be paid within the next period. two years.