All Active Asset Capital (AAA) said on Friday that holders of 50.92% of Audioboom’s share capital have said they would support a takeover of the AIM-listed podcast provider.
AAA announced in July that it had made a possible offer for Audioboom consisting of 12.5 shares and 200p per share in cash. It received irrevocable undertakings in respect of shares representing 26.43% of Audioboom’s capital.
With the extra letters of intent received in support, AAA said on Friday: “The board of AAA believes this represents a strong mandate for the board of Audioboom to continue to explore the possible offer.”
Audioboom rejected the offer in July, arguing that it significantly undervalued the company and urging shareholders to take no action.
Under UK takeover rules, AAA has until 1700 BST on 13 September to either announce firm intention to make an offer or walk away.
Audioboom said: “The concerns of the independent directors of Audioboom in relation to the possible offer remain extant, being the valuation of Audioboom implied by the possible offer, its structure, including the majority of consideration being in the form of unlisted ordinary shares of AAA, and the strategic rationale for such a combination.”
At 1445 BST, Audioboom shares were down 3.9% at 860p.
