Brave Bison sweetens its takeover approach for the fourth time, dangling an 82% premium as it presses System1 shareholders to back a delisting.
Brave Bison (AIM: BBSN) has gone back to the table for a fourth time in its pursuit of System1 (AIM: SYS1), tabling an improved offer worth £47.5m as it seeks to weld together what it calls a challenger marketing technology group on AIM.
The revised terms amount to 360p a share, made up of 135p in cash plus 2.394 new Brave Bison shares for every System1 share held, representing an 82% premium to System1's share price before Brave Bison first built its stake in February. The offer values System1 at roughly 11 times its forecast operating profit.
Brave Bison, which already controls close to 28% of System1, said it has secured letters of intent from further shareholders, including former System1 chief executive Stefan Barden and his family, lifting its combined ownership and support to 38.9%. The bidder used the announcement to point to a softer outlook from its target, noting System1's own forecasts show pre-tax profit for 2027FY slipping to £4.2m from £5.2m in 2025, and argued the target's growth remains modest with profit still below levels seen two years ago.
The escalating offer follows a trading update from System1 this week reconfirming guidance for 5% revenue growth this year, a figure Brave Bison has sought to characterise as underwhelming to strengthen its hand with shareholders and the board.
Should Brave Bison reach the 75% acceptance threshold, it intends to take System1 private and delist it from AIM, ending the target's near two-decade run as a public company. Attention now turns to whether the System1 board will engage constructively or continue to resist, and whether the improved cash-and-shares mix is enough to tip undecided holders into Brave Bison's camp.
This report is based on System1 Group’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Mathias Reding on Unsplash.
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