TMN Group pursues MBO option

TMN Group, the UK online direct marketing group which on 11 March received an offer from Tangent Communications, has formed an independent committee, led by Chairman Peter Harkness, “to evaluate possible offers for the company and all other strategic alternatives.”

The board of TMN explains: “Since Tangent’s approach, the Company has been contacted by several parties expressing interest in acquiring the Company. The Board intends to explore all proposals fully as part of its duty to maximise value for TMN shareholders. The Board has also granted permission to CEO Mark Smith and CFO Craig Dixon to pursue interest with potential private equity buyers.”

The Independent Committee “unanimously agrees that the price proposed by Tangent significantly undervalues the Company and its prospects. Furthermore, it notes that less than 40 per cent. of Tangent’s indicative offer would be in cash.”