Latest news
Esporta advises shareholders to accept Duke Street bid
Health club operator Esporta has finally succumbed to the advances of Duke Street Capital Leisure Investments.
Duke Street upped its bid to 87.5p a share today - an increase of 9 per cent on the original offer of 80p a share - and revealed that it had acquired a further £51.2m shares.
With its stake in Esporta now standing at 55.6 per cent, the bid has been declared unconditional.
In a statement, Esporta said: 'The Board believes this Mandatory Cash Offer continues to undervalue Esporta, which has seen a significant improvement under new management.' However, as the offer is now 'wholly unconditional' the company has advised its shareholders to accept because, in the event that the Esporta shares are de-listed, shareholders would own shares in an unlisted company controlled by Duke Street.
Duke Street raised its bid from the original £133m after Esporta issued A Clear Strategy for Sustainable Growth, countering Duke Street's claims that Esporta could not survive against increasing competition and declaring the 80p per share bid to be a 'nil premium offer'.
Esporta pointed to its new management team and cost savings as evidence it could turn the corner.
It also outlined plans for growth through converting 14,000sq ft of 'low utilisation' areas into gyms and changing rooms, thus creating greater capacity within existing clubs and allowing 14,000 new peak time members - the equivalent of opening four new clubs.
It also planned to implement a new model for future openings with lower operating expenses and has identified 60 potential new locations.
Shareholders have until the end of the month to accept Duke Street's offer. Details: +44 (0)118 912 3500