Lake Capital extends deadline for rebel shareholders to agree a deal

Lake Capital has extended the deadline for Engine's rebel shareholders to agree to a deal by around a week.

Engine: Lake Capital extends deadline
Engine: Lake Capital extends deadline

An Engine spokesman said: "Lake has extended its offer in order to listen to shareholder concerns and gather further acceptances. We remain confident that we will progress as planned in due course."

The US private equity company is to buy Engine in a deal which values the business at £100 million.

Lake Capital needs 75 per cent of the shareholders to agree to the deal. But last night a group of 72 external shareholders, who hold 29 per cent of Engine’s shares, blocked the deal because they were unhappy with their offers.

They believe it is unfair they were offered a lower value per share than current employees, which is refuted by the Engine board and Lake Capital.

One of the reasons for the difference between the values is understood to be the fact that ex-employee shareholders are being paid in cash, whereas current employees are being offered untradeable shares in the new entity.

The original deadline to agree to the offers was 5pm on Wednesday, but the dissenting group held out.

Topics

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Brands that forge an emotional tie are best protected from copycats
Shares0
Share

1 Brands that forge an emotional tie are best protected from copycats

Forging an emotional tie with consumers is one of the strongest ways to protect your brand. Products can be copycatted, but the distinctive identity of a true brand can never be replicated argues Nir Wegrzyn, CEO of BrandOpus.

Just published