Coast Capital Management, the second-largest shareholder of Kin & Carta, has rejected the £203 million ($246.5 million) takeover offer from Apax Partners funds. In a statement released on Friday, Coast Capital criticized the deal as opportunistic and inadequate.
Disappointment Over Board’s Failure to Seek Fair Value
Coast Capital expressed its disappointment with the board’s failure to secure a fair value for shareholders. Recognizing Kin & Carta as a great business with a top-tier management team and talented workforce, Coast Capital emphasized its belief in the company’s potential for significant revenue growth over the next two years. The company expects further sequential growth, particularly in light of Kin & Carta’s all-time high backlog.
Details of the Takeover
On Wednesday, the London-listed digital-transformation consultancy company agreed to a takeover offer from Kelvin UK Bidco, a new company indirectly owned by Apax Partners funds. The deal valued each share at 110 pence, representing a 41% premium to Tuesday’s closing price of 78.0 pence.
As of 1305 GMT, shares were down 0.20 pence (0.2%) at 107.20 pence.