Mitchell Communication Group, the Australian Stock Exchange Listed media company said Thursday that its board of directors is in support of an A$363 million takeover offer from Aegis Media, the British media buying group. The announcement further revealed that the board had accepted Aegis Media’s offer of A$1.20 for every share inclusive of options and performance rights.

The London Stock Listed Aegis Media had earlier halted its trading on the London Stock exchange as the deal was awaiting a final decision before reporting back on its progress. On its part, the Australian media buying firm, Mitchell Communications, the biggest in the country, requested a halt to its trading on the Australian Stock Exchange stating that it had received a bid from Aegis Media for a takeover.

Jerry Buhlmann, Aegis Media chief executive made the acquisition announcement late Thursday, stating that the British firm had raised about US dollars 300 million for the Australian media buy out giant. Harold Mitchell, Mitchell Communication Group’s founder and majority shareholder led the board in a meeting to mull the takeover offer from Aegis Media.

However, prior to the announcement, media reports had already emerged in the UK detailing Aegis plans for expansion in fast growing Asian economies and the purchase of the Australian firm in a move targeted at growing its digital offering. The Mitchell Communications Group is made up of around 20 marketing and media companies inclusive of its foremost media buying firm Mitchell & Partners, Emitch, Australia’s largest digital media firm, Stadia Media, a sports signage company and a host of other public relations, social media and technology based companies.

Mitchell Communications Group as well runs MPG, its joint venture business it has with Havas, a Paris headquartered global marketing communications firm. Havas majority shareholder, Vincent Bollore, has a minority stake in the British media buyout firm, Aegis Media. Speculation over this takeover bid by Aegis has been ongoing with more additional companies from the UK having been thought to be keen on Mitchell Communications.

According to the media reports that first disclosed the deal, Sky TV had said the Aegis Media offer will be structured in a way that it lets the Australian firm’s investors take cash or stock or a combination of the two. The report further stated that the more stock investors decide to take, the more dilutive it will be to Aegis current investors. What that means is that the French industrialist and owner of about one third of Aegis Media, Vincent Bollore, may see his shareholding get diluted moderately.

29 July 2010.