By Joe Hoppe
Globe Invest on Tuesday outlined a cash takeover offer for Best of the Best, in a deal valuing the entire business at around 45.3 million pounds ($58.0 million).
Globe Invest–which is owned by Teddy Sagi and already holds around a 29.9% stake in the online competition organizer–said it will pay around 535 pence in cash for each share.
This represents a 3.6% discount to the company’s closing share price of 555 pence on Monday, but a premium of around 33.75% to the price paid per share by Globe when it first acquired its stake in Best of the Best in September, 2022.
Best of the Best’s board intend to unanimously recommend shareholders accept the offer, and have irrevocably pledged their own shares, representing 18.95% of the company’s currently issued share capital.
Globe said it will explore a delisting of the company from London’s alternative investment market regardless of the outcome of the offer.
Founder and Chief Executive William Hindmarch said he plans to step down around the time of the offer being declared unconditional.
“Our offer represents… a compelling liquidity proposition for fellow shareholders to release their investment from a very illiquid stock,” Sagi said.
Shares at 1331 GMT were down 15.0 pence, or 2.7%, at 540.0 pence.
Write to Joe Hoppe at joseph.hoppe@wsj.com