Resisting a hostile takeover bid
Crisis communication & Financial/shareholder communication
Maluti was asked to support the board of a large local company in articulating its communication strategy and fending off a hostile takeover bid.
Situation
Some of the family shareholders of a local large family business wanted to disinvest and the management thus decided to embark on a deep restructuring of the whole company. At the same time, an overseas raider made an opportunistic bid to take over one of the main assets of the groups. If that take-over happened, that would have resulted in a compulsory offer for the acquisition of the rest of the group as well.
Maluti’s Consulting role
- We advised the Chairman and CEO on internal, media and stakeholder relations, monitoring and analysing public and political sentiment, as they resisted the initial offer on the basis that it was not a real one, and made only to influence the share price.
- We connected the media to supportive institutional shareholders willing to comment on the record.
- We organised off-record briefings between the Chairman and main Editors.
- We facilitated internal communication through a communication network that we had already put in place prior to the restructure.
- We acted as a public affairs facilitator.
Outcome
The bid was eventually withdrawn and the company remains independent to date.
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