Brave Bison Group PLC’s bid for fellow AIM listing Mission Group PLC is ‘highly unattractive’, the investment manager of a major Mission shareholder said on Wednesday.

DBAY Advisors Ltd said Brave Bison’s bid for Mission ‘undervalues’ the marketing services specialist. DBAY is the investment manager of London-listed Logistics Development Group PLC, which holds just under an 11% stake in Mission.

‘DBAY believes that the indicative terms of the possible offer undervalue Mission and its prospects. Whilst DBAY recognises the attraction of cash offers (or full cash alternatives) at significant premia, especially given the limited trading volumes in Mission shares, the all-share offer proposed by Brave Bison is highly unattractive,’ DBAY said.

‘It is DBAY’s recommendation to the board of LDG not to take any action in respect of the possible offer at this time.’

London-based digital advertising company Brave Bison on Monday said it made an unsolicited offer for Mission, which the latter rejected. The offer, which comprised 11.5 Brave Bison shares for each Mission Group share, ascribes the company’s shares a value of around 29.04 pence, giving an equity value of around £26.4 million.

Mission shares traded 1.3% higher at 24.30 pence each in London on Wednesday afternoon, giving it a market capitalisation of £22.4 million. Brave Bison traded 2.3% lower at 2.47p; it has a market value of £31.7 million.

The proposed combination would create ‘a scaled media, marketing and technology services company’, Brave Bison said, with combined revenue for financial 2023 of around £120 million and pro-forma adjusted earnings before interest, tax, depreciation and amortisation of £14 million.

A firm offer was not yet made. Brave Bison said this was contingent on Mission Group providing due diligence access and expressing its support for the combination.

Mission Group labelled the proposal ‘opportunistic’.

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