Nielsen rejects $9B proposal from PE consortium (NYSE:NLSN)

Nielsen Holdings plc (NYSE:NLSN) rejected a $9 billion, or $25.40/share give, from a personal fairness consortium, stating that it “considerably” undervalued the Television/Online measurement company.

Nielsen’s board “unanimously identified that the consortium’s provide noticeably undervalues the corporation and does not sufficiently compensate shareholders for Nielsen’s progress prospects,” according to a assertion. Nielsen also announced its intention to begin share repurchases underneath its beforehand authorized $1 billion share repurchase authorization.

The rejection followed studies very last 7 days that a consortium of Elliott Administration and Brookfield Asset Administration (BAM) were in advanced talks to invest in the business for $15 billion, including personal debt.

Nielsen also stated, in consultation with 1 of its most significant holders, WindAcre Partnership LLC, that the consortium present would be “highly unlikely” to receive shareholder approval. WindAcre was asked to be part of the consortium, even though it turned down the supply and claimed that it would oppose the transaction as it views Nielsen’s (NLSN) intrinsic benefit to be “significantly greater” than values proposed by the consortium.

WindAcre also instructed Nielsen that if Nielsen were to settle for the proposal, WindAcre planned to get direct possession of adequate shares to avert shareholder approval of the proposed offer.

WindAcre disclosed in a filing on Monday that it experienced a 9.61% stake in Nielsen (NLSN) and it considered the shares were “deeply undervalued.” WindAcre has economic exposure to Nielsen by means of total return swaps with regard to about 51.9 million shares, or 14.44% of Nielsen’s everyday shares.

WindAcre sees Nielsen’s (NLSN) intrinsic worth effectively in extra of $40/share, according to a independent statement from the investor.

“We do not feel the provide will come shut to recognizing Nielsen’s intrinsic price and we were not going to be forced out of our holding at this rate,” Snehal Amin, Handling Companion of WindAcre said in the statement. “We intended to block the transaction, so that we could recognize, in time, the intrinsic price of our financial commitment.”

Nielsen claimed it strategies to get started to repurchase shares under a $1 billon buyback authorization when the company’s trading window opens, now anticipated to arise just after Q1 earnings planned for April 21.

The Nielsen rejection follows stories in 2019 that numerous PE corporations had bid for the Tv set measurement business, even though no deal came to fruition.