Shares of Audioboom (LON: BOOM) are climbing after the company announced it has rejected an approach from All Active Asset Capital Limited (AAA).
On Monday, AAA announced it had the support of Audioboom shareholders owning 4.1 million shares or 26.4% of the company.
They were considering an offer of 12.5 new shares and 200p in cash per Audioboom share. This valued Audioboom shares at around 1,200p each.
However, Audioboom has said that the offer “significantly undervalues the Audioboom business, its progress and potential to capitalise on its market position to generate value for the company's shareholders.”
The offer was said to be unattractive and that the independent directors do not believe there to be any logic to justify a combination of the two businesses.
Audiobooom has advised its shareholders to take no action.
Shares of podcasting company, Audioboom, are currently trading at 956p on Thursday, up 2.73%.
Should you invest in Audioboom shares?
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