Shares in media agency M&C Saatchi (SAA) jumped over 8% to 204p, after the firm confirmed recent press speculation that it has received a preliminary approach from AdvancedAdvt (ADVT), the acquisition vehicle headed by serial software entrepreneur Vin Murria, who is also a Saatchi director.
Murria's extensive career has predominantly been based around mergers and acquisitions in the software sector. She received considerable acclaim for transforming Advanced Computer Software from a £12 million software business into a £750 million company for investors.
Shareholders received a 140p per share cash bonanza when private equity firm Vista Partners acquired the firm.
In December 2019, shares in M&C Saatchi plunged 45% after the group acknowledged that its accountancy scandal was much more severe than initially thought.
This triggered a profit warning and was followed in January 2020 by an FCA investigation, resulting in the shares falling a further 9% to 100p, valuing the company at £93 million.
At the start of the pandemic in 2020, Murria acquired a 12.5% stake in M&C Saatchi at 40p per share for £6 million.
Earlier this week, AdvancedAdvt (ADVT) acquired a further 12 million shares in the group, at a price of 200p. This represented a near 20% premium to the 167p stock price at the time of the transaction.
Shares in M&C Saatchi have benefited from a strong recovery in trading, which has prompted a series of upgrades to earnings guidance. In mid December the group suggested that full year operating for 2021 would be ‘materially ahead of expectations’.
AdvancsedAdvt’s approach has triggered the Takeover Code. This means the group has until 5pm on February 3rd to clarify its intentions regarding a takeover.
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