French operator Iliad has recommended that minority shareholders accept the proposed buy-out offer from controlling shareholder Xavier Niel. An independent analysis of the EUR 182 per share bid found it was fair and higher than any amount achieved in standard valuation methods.
Niel announced in July plans to take Iliad private in order to take greater control over its strategy. He already holds 75.23 percent of the capital and 81.65 percent of the voting rights in Iliad.
The offer price of EUR 182 per share is a 52.7 percent premium on the 30-day average weighted price prior to the initial offer announced. Pending approval from French securities regulator AMF, the offer period will run from 08 to 23 September.
Iliad's board, excluding Niel, has given its formal approval to the offer in a presentation for shareholders. This includes a fairness opinion obtained from the company BM&A Advisory & Support.
The independent expert found that both a DCF analysis and a comparison of stock market prices did not result in a higher price for Iliad, nor do any future strategic scenarios suggest shareholders will achieve a higher price for their stock than Niel's offer.
