Photon Group: We’re not talking to anyone about a sale
The Photon Group has issued a strong rebuttal to suggestions from a mergers and acquisitions specialist that the company is a takeover target.
Meger Market, a site that describes itself as an M&A intelligence service, has listed Photon – parent company of agencies including BMF, BWM, Naked Communications, Bellamy Hayden, AdPartners, Frank PR and City PR – as a “potential target”.
In a rundown on potential Australian equity deals, Merger Market says: “It has been reported that although chairman Tim Hughes has denied any discussions, private equity could be interested in buying Photon Group. Hughes is believed to have met with private equity executives to talk about selling some or all of Photon.”
Despite its strong portfolio of companies, Photon shares – listed on the Australian Stock Exchange as PGA – are languishing below a dollar, valuing the company below $100m. In February, Photon said that it had made an underlying net profit of $9.5m in its half yearly results.
But Hughes told Mumbrella in an email:
“It is pure speculation. We are not currently in discussion with anyone regarding the sale of Photon. All the major shareholders are long term holders. Haven’t you heard the number one rule? Buy low, sell high. RG Capital and myself have been ongoing buyers of PGA shares ever since we listed. More recently we have lodged change of interests following acquisitions of shares. Photon’s most recent results in late February revealed we are one of only a handful media and marketing companies growing, due to the fact we are not dependant on traditional advertising. We are very pleased with our strong performance and we continue to benefit from the quality and diversity of the earnings streams our 5 divisions.”
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
Linkedin