Team Internet Group, a prominent UK-based internet services company, is at the center of attention after receiving two separate takeover proposals. The offers come from private equity firm TowerBrook Capital Partners and fund manager Verdane. Each bidder has proposed a price of 125 pence per share, valuing the company at approximately £315 million. This represents a significant premium compared to its recent share price performance.
Background on Team Internet
Previously known as CentralNic, Team Internet operates a variety of internet-related businesses. These include domain name registries like .sk (Slovakia) and services such as domain parking through ParkingCrew. The company is also a major player in online advertising technologies.
The announcement of the takeover proposals caused Team Internet’s shares to surge by 28%, from 91 pence to 117 pence. This recovery follows a recent drop triggered by a disappointing third-quarter update in November, which showed a decline in revenue per thousand sessions and flat earnings projections.
Options for shareholders
In addition to the cash offers, the proposals include an alternative for shareholders to opt for unlisted equity. This option would allow existing investors to remain connected to the company post-acquisition, potentially benefitting from future growth.
Board considerations
Both TowerBrook and Verdane had made earlier offers, which were rejected by the board as undervaluing the company. Now, the board is carefully reviewing the new proposals with advisors and maintaining limited communication with the bidders. Under UK takeover rules, the potential acquirers must formalize their intentions by February 4 or withdraw.
This scenario raises questions about the future of Team Internet. The offers could be seen as an opportunity to stabilize the company following its recent valuation struggles, or they may spark debates about its long-term potential as an independent player. Shareholders and the market eagerly await the board’s decision in the coming weeks.
