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Arena Events Group Share Price Surges After Agreeing to Takeover

Sam Boughedda trader
Updated 20 Oct 2021

Arena Events Group (LON: ARE) has seen its share price surge Wednesday after investors reacted to news that it has agreed to a takeover offer from Theta Bidco, a Middle East consortium made up of Abu Dhabi-based IHC Industrial Holding and Saudi Arabia's Tasheel Holding Group.

Arena Events has agreed to a cash offer that values the company's shares at £71 million and implies an enterprise value of £95.1 million. Each shareholder will receive 21p per share, representing a premium of 48.4% to the closing price of 14.2 pence per Scheme Share on 19 October.

Tasheel already has around a 23.9% stake in Arena, with the company stating it has been instrumental in helping Arena grow the business in Saudi Arabia.

Commenting on the Acquisition, Ken Hanna, the Chairman of Arena, said:

“The offer from the Consortium represents a substantial premium to the Arena Group's existing share price and recognises the quality of Arena, the agility of the business to successfully rebound from the COVID-19 pandemic and its standing amongst its peers as the world of events returns to normality. 

“As a privately owned group, the new owners will help Arena grow through additional funding which guarantees the future of the business as a leader in the event rental market. In this regard, both IHC and Tasheel are perfect partners for Arena as they provide enormous security and backing for the business going forward.”

If the deal were to go ahead, current Arena CEO Greg Lawless will step down. 

Arena Events Group shares have soared 42.8% to 20.2p following the takeover news. In August, the company announced its US subsidiary, Arena Aztec Shaffer, agreed to a new multi-year contract with Championship Management, a division of the PGA TOUR.

Should you invest in Arena Events Group shares?

Arena Events shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are ARE shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.