The board of ASX-listed BigAir (ASX: BGL) has unanimously rejected Clever Communications' (ASX: CVA) takeover bid, launched last week.
In a release to the ASX, the board claimed the 1 for 1 scrip offer from Clever undervalued the telco, would result in excessive dilution for BigAir shareholders, and strongly recommended shareholders ignore all communication received from Clever.
BigAir currently trades at $0.05 per share; Clever Communications trades at $0.051 per share.
The statement also claimed the recent profitability of BigAir at NPAT level and strong EBITDA growth over the last year had yet to be reflected in the BigAir share price.
BigAir directors, who collectively hold 37 per cent of total shares, will also be rejecting the offer, according to the release.
Clever has yet to release the bidder statement to BigAir shareholders. It is planned to go out next week.
A spokesperson for the telco said it was unavailable to comment on the BigAir statement until its board has met.