AIM-listed advertising platform System1 (LON:SYS1) has rejected two approaches from major shareholder Brave Bison (LON:BBSN). Media and marketing firm Brave Bison, also listed on AIM, already owns 3.5 million shares or just under 28% of System1.
No premium for control
On 8 June, Brave Bison sent an unsolicited proposal to acquire System1 in an all-share offer. The proposed exchange ratio of 3.6 Brave Bison shares represented zero premium to System1’s share price of 297p at the time.
Nevertheless, System1 continued to engage with Brave Bison in the hope the firm would materially improve its offer. As no further proposal was forthcoming, System1 rejected the initial proposal on 8 July.
On 10 July, Brave Bison sent a new offer with a mix of cash and shares valuing System1 shares at 327p. While that marked a 10% improvement on its initial offer, it was still only a small premium to System1’s last share price.
Once again, System1 has rejected the proposal saying it ‘materially undervalues’ the business. Moreover, the firm argues, it doesn’t include a premium for control.
Having spoken with System1 a few times, and following its strong FY26 results, we are positive on its prospects. Brave Bison bought its stake in March 2026, and we suspect it wants full ownership before someone else discovers the firm and makes an offer.
On paper the combination would create an attractive marketing data and tech company. Net revenue would be around £80 million while EBITDA would be around £14 million before any synergy benefits.
Brave Bison is an acquisitive company with the motto of ‘going where the growth is’. System1 fits the bill, hence the initial 28% stake, but the approach is opportunistic and the business deserves a decent premium. We will continue to watch, popcorn at the ready.
Read the press press release here: https://system1group.com/investors
