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I have shares in a UK listed company called Perform Group. It's recently been the target of a buy out by a private company, and I've received the following notification:

AI PG LLC (AI) has announced an extension of the Mandatory Final Cash Offer (Offer) for the entire issued and to be issued share capital of Perform Group PLC (Perform) on the following basis: GBP2.593 for each Perform Ordinary share held.

I've read elsewhere that:

"The directors of Perform noted that it is now unlikely that the company’s shares will continue to be listed on the London Stock Exchange, as a result of Access Industries (AI) increasing its ownership interest in Perform to approximately 67.97 per cent."

If I don't accept their final cash offer (60% of the value I brought it for) for will seem to be a successful buyout, what are will the consequences be? If the shares are delisted, will it mean that I lose the shares I have in the company?

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    It looks like the buyer now holds enough voting rights (71% as of 21 October) that the offer is going to go through. So your best bet is probably to sell your shares in the market at 260p while it is still possible as it seems unlikely that you will get more than the offered price. If the shares get delisted you would have to find a buyer to get rid of your shares, and would probably be at a discount to the offer price... – assylias Oct 29 '14 at 14:42
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    And what happens if you havent sold your shares and the stock delists? – user24033 Dec 13 '14 at 13:53
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If they own enough shares to vote to sell, you will be paid the offer price quoted to you.

At that point if you do not wish to sell your only recourse will be to file a lawsuit. This is a common tactic for significant shareholders who have a minority stake and cannot block the sale because they have insufficient voting rights. What usually happens then is that they either settle the lawsuit out of court by paying a little more to the holdouts or the lawsuit is thrown out and they take the original offer from the buyer. Rarely does a lawsuit from a buyout go to trial.

  • Would it be worth me holding out for a higher offer, or is it best to sell? – stats101 Oct 31 '14 at 17:04
  • Unless you have a lawyer and enough shares for that higher offer to pay legal fees, you will have no choice but to sell. – Nathan L Oct 31 '14 at 18:11

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