Shares of Audioboom Group PLC (LON: BOOM) plunged 6.82% after an update indicating that All Active Asset Management (AAA) had not submitted a revised offer to acquire the company after its £188.3 million offer was rejected for having a low valuation.
AAA independent directors had promised Audioboom that it was pursuing several substantial initiatives, which led to the deadline extension to submit a solid offer by 13 September 2021.
Audioboom clarified that it had not received a firm offer from AAA and was unaware of any substantial initiatives being pursued by the investment fund regarding the acquisition.
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The board of directors of the on-demand audio and podcasting distribution company clarified that their concerns about the firm’s valuation and the structure of the acquisition, which was to be majority funded via a share swap, were yet to be addressed.
Investors seemed disappointed by the announcement given the decline in Audioboom’s shares price. However, AA has up to Monday next week to make an offer, so there is still hope that the two could reach a deal.
Regardless, Audioboom shares are up over 200% this year, an excellent return for investors who bought at the start of the year. The company’s shares have recently topped out but could resume an uptrend if they break above the 1000p level.
*This is not investment advice.
Audioboom share price.
Audioboom shares plunged 6.82% to trade at 834p, falling from Thursday’s closing price of 895p.