MP & Silva founder steps into media editorial world with £16.6m takeover

Electric Word
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Education information provider Electric Word PLC has said that it has agreed to a £16.6 million takeover offer from bid vehicle Sport Business Acquisitions Ltd.

Under the terms of the acquisition, shareholders in Electric Word will receive 3.93 pence per share, valuing the entire company at £16.6 million, representing a premium of 16% to the stock’s closing price of 3.38 pence on June 26.

Shares in Electric Word were up 11% at 3.76 pence on after the news went out.

The acquisition will be funded by a loan provided by Riccardo Silva and Marco Auletta, who own and control Sport Business Acquisitions, and is conditional on being approved by the majority of shareholders in the new company, approval by Electric Word shareholders in a special resolution, and the sanctioning of the scheme by court, ise.co.uk has reported.

Sport Business Acquisitions plans to support the development of SportsBusiness Group, which provides business insight, information and consultancy to executives who work in sport, and is currently Electric Word’s last remaining operating business in its portfolio, after selling its stake in its iGaming, Optimus Education and Speechmark Publishing businesses in November. As well as maintain its independence, Sports Business Acquisitions will seek to add to the knowledge, experience and service capability of SportsBusiness Group, it said.

Sport Business Acquisitions has accepted irrevocable undertakings to vote in favour of the scheme in the court meeting for a total of 317.9 million shares in Electric Word, reflecting a 80.3% interest, and to also vote in favour of the special resolution in the Electric Word general meeting in respect of a total of 330.5 million shares, representing a 80.9% stake in the company.

“Whilst the board of Electric Word remains confident of the future prospects for SportBusiness group we firmly believe that this transaction is in the best interests of all Electric Word stakeholders, including shareholders, employees and customers. The acquisition will provide SportBusiness group with a broader platform and additional experience which should assist it to achieve long term growth and success. The board of Electric Word believes that the acquisition is attractive and provides Electric Word shareholders with an opportunity of a full cash exit at a premium to the current share price,” said Electric Word Non-Executive Chairman Andrew Brode.

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