Brave Bison (LSE:BBSN) announced a fourth and increased offer for System1 Group, valuing each System1 share at 360 pence through a combination of cash and newly issued Brave Bison shares.
Under the revised proposal, System1 shareholders would receive 135 pence in cash and 2.394 new Brave Bison shares for each System1 share held.
Based on Brave Bison’s recent volume-weighted average share price, the offer values System1 at approximately £47.5 million. Brave Bison said this represents 11.3 times System1’s consensus adjusted operating profit for FY27 and an 82% premium to System1’s undisturbed share price in February.
Brave Bison Holds 27.85% of System1
Brave Bison currently owns 27.85% of System1’s issued share capital and has received letters of intent covering a further 10.95%.
Together, these represent approximately 38.9% of System1’s share capital. The offer remains subject to a minimum acceptance condition of more than 50%.
If the offer is accepted in full, existing System1 shareholders would hold approximately 16.6% of the enlarged Brave Bison.
Brave Bison Sets Out Rationale for Offer
In presenting its revised proposal, Brave Bison cited System1’s forecast revenue growth and expected profitability relative to FY25 as part of its rationale for the transaction.
Brave Bison said the combination would create an enlarged AIM-listed marketing data and technology business. This represents Brave Bison’s assessment of the proposed transaction.
Brave Bison is an AIM-listed digital media and marketing company operating across data-driven marketing technology and content. Its strategy includes acquisitions and investments intended to expand its operations and capabilities.
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