SCS Group’s Share Price Soared 63% on a £99.4M Takeover Offer

The SCS Group PLC (LON: SCS) share price soared 63.3% after Poltronesofà S.p.A. agreed to acquire ScS for a total consideration of £99,387,946, valuing each ScS Group share at 280p. The company agreed to affect the transaction via a court-sanctioned scheme of arrangement.

The proposed transaction value represents a substantial premium, approximately 66% above the closing price of ScS Shares, which was 169 pence on October 23, 2023. ScS will be acquired by Cerezzola Limited (“BidCo”), a wholly-owned subsidiary of Poltronesofà,

The board of Poltronesofà believes there is a compelling strategic and financial rationale for pursuing this acquisition due to two key factors: as the next step in their successful pan-European expansion, Poltronesofà has decided to enter the United Kingdom's sofa market. 

Poltronesofà after carefully observing the UK market and its key players, Poltronesofà recognised the shared values and principles between the two companies. They admire ScS's significant presence in the United Kingdom's sofa and furniture market, strong brand position, and 100 well-located and spacious showrooms nationwide. 

Additionally, ScS boasts a well-invested and growing digital e-commerce platform, industry-leading operational excellence, and consistent financial performance. The directors of ScS, who have received financial advice from Shore Capital regarding the acquisition's terms, consider them fair and reasonable. 

Shore Capital's advice also considers the commercial assessments of ScS directors. Consequently, the ScS directors unanimously intend to recommend that ScS shareholders vote in favour of the scheme at the court meeting and the resolutions related to the acquisition at the ScS General Meeting.

The acquisition includes a payment of 270p for each share and a 10p dividend for the year ended 29 July 2023, which is not conditional on the Acquisition becoming effective. ScS also intends to release its earnings report for the year ended 29 July 2023 tomorrow. 

Founded in Reggio Emilia in 1995, Poltronesofà has established itself as Italy's leading sofa retailer and one of Europe's top sofa retailers. They design and sell a range of sofas, armchairs, sofa beds, and decorative accessories through 167 stores in Italy and 106 in France. 

The company has 27 additional stores across Europe (including nine in Switzerland,15 in Belgium, two in Cyprus, and one in Malta).

SCS Group share price. 

The SCS Group share price soared 63.31% to trade at 276.0p, from Monday’s closing price of 169.0p.