Tight Yorkshireman
24 Jul 2017
Re: Undervalued I'd rather have no further bidders and reject the current bid to be honest. Strongly feel this is a good growth play already and will surpass in the next 12 months any current likely bid valuation.
IOMINVESTCOM
21 Jul 2017
Re: Undervalued Let's hope a 2nd bidder comes on the scene to achieve true value for shareholders. I do not think it will be allowed to be purchased on the cheap with so much interest in the payment space at present
charlie51
21 Jul 2017
Offer From a PE perspective this a great deal - for the buyer. It is a poor deal for shareholders - particularly in light of the metrics of today's acquisition and what numbers this brings to the PAYS party ( and let us not forget Leonoff always has over delivered when integrating acquisitions in the past). Hopefully, we will see someone else emerge as a contender as this undervalues the current SP by at least the order of £1.00. The offer should otherwise be rejected.
wineberry
21 Jul 2017
The possible offer The very fact that private equity funds are looking to take the company private indicates that it is under-valued; that's the market and what private equity funds are all about
Maru118
21 Jul 2017
Undervalued My initial thoughts when reading the RNS was that 590 was undervaluing the growth prospects of the company, and to release this on the same day as an acquisition has resulted in one day of share price spikes, instead of two, without even taking into account the long term value the acquisition offers us. Brokers had target prices around the current share price today, without even the take over offer. My gut is this is undervalued, and guy instincts are calculated using methods that are well beyond human comprehension. Our mind only process a fraction of all information available to us in the present. The gut draws on information learned over a lifetime and information available in the here and now. Got a little off topic, but I'll accept £7 and no less.
IOMINVESTCOM
21 Jul 2017
Re: Whats going on? Hi Claude. I'm waiting on developmentsaleAtb
claude reins
21 Jul 2017
Re: Cash offer 5.90 I have re-read the RNS and I dont see any reference to the Board recommending the offer. Does anyone else? What am I missing - if anything?
claude reins
21 Jul 2017
Whats going on? Today the company announces an acquisition which further diversifies the business generally and in the US specifically. So far, straightforward. Havent analysed the details of the acquisition but Leonoff freed himself up some months ago by the appointment of a COO to do more M&A activity.As far as as the takeover bid is concerned, the RNS has been issued by the Board but other than the reference to the willing accepotance by the largest shareholder - only 10% of the shares - the Board dont seem to have made any comment one way or the other. There is no board recommendation that I can see.Also there is a condition that the company divests itself of a portion - the Asian portion which presumably is heavily dependent on (dodgy?) gambling. There has always been a sort of cloud hanging over the dependence at one time, possibly still, on one Asian customer that was seen as 'unreliable' by some. Since then, the company has managed to diversify and reduce this dependence to a more acceptable level. Back to the bid, there is a reference to their already being a willing buyer for that element, so that doesnt seeem to be a hindrance.As regards the bid being a generous one - the allusion to it being 30%+ versus the average over quite a long period, well I dont buy that. The company has been adding in value since the low of Dec and I see a rise today versus yesterday of less than 8% - which is quite underwhelming for a company which on Stockopedia is a High Flyer, has a stock rank of 92 (very high), introduced a share buy back programme which should improve earnings per share. Of the 9 brokers quoted on Stockopedia, 1 is a Hold today, 3 are Buy's and 5 are Strong Buy's so that even when you take out the house brokers, that is a strong recommendation. If they continue to buy earnings enhancing companies, then the group should be able to cintue to grow profitably, enhance earnings and increase the SP. Old Mutual want out I presume, to give them cash to make 'better' purchases elsewhere. No dividends here, solely reliant on SP growth for 'profit'. Fidelity have around 10% and they have made no announcement, either attached to the RNS from Paysafe or in a separate statement. So what do they think?So of the total 485 m shares (end June) Old Mutual will sell their 50m, and there have been less than 6m shares traded today so far. Doesnt really push one to sell, does it? I looked further at the RNS, and the bidders quoted this para:'Under the terms of the Possible Offer, the ordinary shareholders of Paysafe would receive 590 pence in cash per ordinary share in Paysafe. The terms of the Possible Offer represent a premium of approximately 34% to the volume weighted average price for the six month period ended 30 June 2017, the day prior to broad sector consolidation speculation.' I think that the last part of that sentence is the relevant one. If broad sector speculation has been driving the price of Paysafe higher, then the 590p offer is only around 15% above the price on June 30th. Even during that time the market has been rising, and Paysafe has been increasing in value I assume because it is absorbing profitable acquisitions, making savings and growing organically. So that takes even mkre shine off the offer.I think I will hang around and hold for a while. I appreciate the 7% rise in the paper value of my shares but am not minded to sell at this stage. What happens next? Dont know. Any ideas?
claude reins
21 Jul 2017
Whats going on? Today the company announces an acquisition which further diversifies the business generally and in the US specifically. So far, straightforward. Havent analysed the details of the acquisition but Leonoff freed himself up some months ago by the appointment of a COO to do more M&A activity.As far as as the takeover bid is concerned, the RNS has been issued by the Board but other than the reference to the willing accepotance by the largest shareholder - only 10% of the shares - the Board dont seem to have made any comment one way or the other. There is no board recommendation that I can see.Also there is a condition that the company divests itself of a portion - the Asian portion which presumably is heavily dependent on (dodgy?) gambling. There has always been a sort of cloud hanging over the dependence at one time, possibly still, on one Asian customer that was seen as 'unreliable' by some. Since then, the company has managed to diversify and reduce this dependence to a more acceptable level. Back to the bid, there is a reference to their already being a willing buyer for that element, so that doesnt seeem to be a hindrance.As regards the bid being a generous one - the allusion to it being 30%+ versus the average over quite a long period, well I dont buy that. The company has been adding in value since the low of Dec and I see a rise today versus yesterday of less than 8% - which is quite underwhelming for a company which on Stockopedia is a High Flyer, has a stock rank of 92 (very high), introduced a share buy back programme which should improve earnings per share. Of the 9 brokers quoted on Stockopedia, 1 is a Hold today, 3 are Buy's and 5 are Strong Buy's so that even when you take out the house brokers, that is a strong recommendation. If they continue to buy earnings enhancing companies, then the group should be able to cintue to grow profitably, enhance earnings and increase the SP. Old Mutual want out I presume, to give them cash to make 'better' purchases elsewhere. No dividends here, solely reliant on SP growth for 'profit'. Fidelity have around 10% and they have made no announcement, either attached to the RNS from Paysafe or in a separate statement. So what do they think?So of the total 485 m shares (end June) Old Mutual will sell their 50m, and there have been less than 6m shares traded today so far. Doesnt really push one to sell, does it? I looked further at the RNS, and the bidders quoted this para:'Under the terms of the Possible Offer, the ordinary shareholders of Paysafe would receive 590 pence in cash per ordinary share in Paysafe. The terms of the Possible Offer represent a premium of approximately 34% to the volume weighted average price for the six month period ended 30 June 2017, the day prior to broad sector consolidation speculation.' I think that the last part of that sentence is the relevant one. If broad sector speculation has been driving the price of Paysafe higher, then the 590p offer is only around 15% above the price on June 30th. Even during that time the market has been rising, and Paysafe has been increasing in value I assume because it is absorbing profitable acquisitions, making savings and growing organically. So that takes even mkre shine off the offer.I think I will hang around and hold for a while. I appreciate the 7% rise in the paper value of my shares but am not minded to sell at this stage. What happens next? Dont know. Any ideas?
Yertiz
21 Jul 2017
Re: Cash offer 5.90 Nail. Head. Hit, well and truly, Freedom-thirty5. Some serious questions raised but I doubt us PIs will get any answers to them. All seems a bit 'under the counter' dealing to me, disappointing because I think the potential and future PAYS hold is much brighter than £5.90 per share, never mind the current business value. Or am I being greedy and sceptical?
freedom-thirty5
21 Jul 2017
Re: Cash offer 5.90 Tight Yorkshireman, I agree on all points there. I forgot to mention the weighted average valuation method, which seemed to have been based on an entirely arbitrary point in time ("the day prior to broad sector consolidation speculation"??!!), a point in time which happens to unfairly short-change the shareholders.I am starting to think what we are seeing here is a cunningly-planned daylight robbery. I will be doing my best to figure out what financial connections the PAYS directors have to "The Consortium" i.e. Blackstone and CVC Capital Partners.I wonder... .perhaps the Consortium, or elements thereof, are stuck with rather unpleasant short positions in PAYS and this is the only way they can address their otherwise impossible situation.It's interesting to see the BoD and Old Mutual Global Investors (UK) Limited conspicuously making a rather unnecessary recommendation to accept £5.90 per share before there has been any change for other bidders to run the ruler over PAYS. It's all very smelly.Then there's the bit about: "Entry into an agreement by the Consortium to sell the Asia Gateway business to a third party buyer is a non-waivable pre-condition which must be satisfied before the making of any firm offer by the Consortium."Why on earth should shareholders be concerned with how the acquiring entity finances the takeover?And then:"The Consortium reserves the right, with the agreement or recommendation of the Paysafe Board, for Bidco to make an offer for Paysafe, at any time, (a) on less favourable terms than the Possible Offer described above; and (b) by introducing other forms of consideration. The Consortium reserves the right to reduce the consideration to take account of any dividend that is declared and paid or becomes payable by Paysafe."What possible benefit does this confer on anyone except the buyer? What are the BoD playing at here?It's all rather disappointing. Up to now the company (as PAYS and as OPAY before that) has been good to its shareholders. I particularly appreciated the rights issue that preceded the transition to PAYS, and I REALLY enjoyed the share buyback policy when those barracudas were shorting the company while spreading questionable negative propaganda back in December.I hope the directors explain themselves at some point.
Tight Yorkshireman
21 Jul 2017
Re: Cash offer 5.90 I think that 5.90 substantially undervalues the business and doesn't seem to take enough account of the solid future growth prospects. IMHO the share price would have reached 5.90 in the next few months anyway.The weighted average valuation method also means the offer price takes into account the rampant shorting and mis-information that dragged the share price down earlier in the year.I think £7.00 would be much closer to fairer value. I would view having to sell my shares for 5.90 as a punishment.
freedom-thirty5
21 Jul 2017
Re: Cash offer 5.90 Not sure how to feel about this one.. This news pretty much pegs the price to the £5.90 range unless a better offer comes in.I question whether this is in shareholders interests, seeing as how PAYS has been growing consistently both organically and through acquisition, and would most likely be worth more than £7 by next year.Personally, I would prefer to take the ongoing growth in future years than sell out now.
Ramptastic
21 Jul 2017
Re: Cash offer 5.90 No, make that £8.00.J
Ramptastic
21 Jul 2017
Re: Cash offer 5.90 Cheeky low-ball offer if you ask me. The SP needs to be around 700p to match the Worldpay deal in terms of valuation.Jim
