Cybit Share Discussion Threads

[horsepower] 11/12/2009 17:24

I've thought long and hard and my 250k will also be voting against this deal.

[bearstalker] 11/12/2009 15:17

My 85,000 shares will be voting against the offer as well.

[philwill] 11/12/2009 15:13

david the key players will get a board appointment as part of the deal i would think

[bonio10000] 11/12/2009 14:29

£500k a year for a few years plus 800,000 shares.

Not bad for a few years work.

I would expect them to be retained by Bidco on similar terms as well.

[davidosh] 11/12/2009 14:25

The company is certainly worth more and you have to ask why all the money has been invested in the product over the years and huge salaries to directors only to give in to a short term gain just as profits are starting to grow and give decent long term gains for those who have waited patiently and deserve reward. The directors surely did not award themselves high levels of remuneration and share options in such a small company for an exit at much less than one years sales and with cash on the balance sheet.

[singinsmythe] 11/12/2009 14:09

After sleeping on it I've decided to vote against this buyout, the company is worth more.

[sanity] 11/12/2009 12:44

So there you have it!


4.Background to and reasons for recommending the proposals Despite Cybit's track record and growth, the Cybit Board has remained aware that the Cybit share price performance has been impaired by a number of factors
including the Company's limited scale and the low level of dealings in the
shares.

Following an approach by Francisco Partners, the Cybit Board held detailed discussions regarding the terms of a potential acquisition of Cybit by Bidco.
These discussions have resulted in the proposed recommended acquisition of Cybit by Bidco at a price of 75.0 pence cash per Scheme Share.

[sanity] 11/12/2009 12:25

75p would have been achieved in the next 6 months without any takeover I am sure of that. This is too cheap I am sure others will come in, though this is not an ideal time with the Christmas Holiday period upon us. Not quite the Chrismas Hamper I had in mind, appologies.

[buenos aires] 11/12/2009 10:52

VERY INTERESTING READING FOR SMALL SHAREHOLDERS

From Francisco Partners web site.

The BOARDS of CyberspaceBidco Limited ( " Bidco " ) ,an acquisition vehicle CONTROLLED by funds with Fransisco Partners, AND Cybit Holdings plc ( "Cybit " ) are pleased to announce that they have reached agreement to buy Cybit from the present shareholders for 75p per share.

Francisco Partners targets MAJORITY and MINORITY investments in PRIVATE companies, PUBLIC companies ,and divisions of PUBLIC companies.
--------------------------------------------------------------------------------------------------------------------
This exercise is simply to buy out the majority small shareholders ,eitherwise why pay Francisisco Partners £220,000 ,in the event of the deal not going ahead . Seems a bit strange to pay someone if their interest in Cybit is declined by the 62% not in on the deal. And since when its honest that a single "scheme share " can avoid the need for an independent valuation .!

Apart from the 38% ,with inside knowledge ,( its only illegal if you are on the outside ) ,the rest of us can only guess the reasons behind this "acquisition" .
So we have no idea who will end up owning this new co etc ,except the 38% that are in favour of the deal will do OK . HOLD ON TO YOUR SHARES AND VOTE NO.

[horsepower] 11/12/2009 10:33

...and try buying that number of shares on the open market. You would end-up with a price of a lot more than 75p.

[philwill] 11/12/2009 08:57

the premium is fine, its whether they are getting the company too cheaply that is the question

[this_is_me] 11/12/2009 08:20

They have bid double the offer price. Thst is excellent negotiation by the Board. They have done us proud. How often do you see that kind of premium in a takeover?

[sdavis] 11/12/2009 08:07

Too much in the current climate Pedro.

Sanity: alternative bids not ruled out in the RNS as long as they are +10%.

We will wait and see.

[pedr01] 11/12/2009 08:02

Agree SD ... was hoping to exit at a PSR > 3 sometime in the future. A PSR

[sanity] 11/12/2009 08:00

SD,

I am with you all the way. I suspect that with the for sale sign up we will get interest from other parties. So not is all lost yet. I do however feel for the employees here should the bid be from a competitor, that is a risk Horsman has taken.

[sdavis] 11/12/2009 06:41

Good morning all....

I was Christmas Shopping yesterday.........got the news last night.

So what do I think? Part of me is relieved that 75p is on the table at last. However I am bitterly diapppointed by the lack of vision and understanding by both small investors and institutions. Here is the rub: take a look at the last accounts. Approx £2m profit AFTER A FINANCE CHARGE OF £1.8m.

Now, find someone who can finance the lease book to bring it in-house. Short term hit on profits (see all previous posts on revenue recognition policy). But in 3 years and the Fianance Charge has gone!!! Add to that the increase in business as funding is no longer a problem!!

So the potential profit for somone who invests cash is £3.8m on last years figures. Growth company, good management, lease book, diversified portfolio.... give me a price for that.

Personally I think 75p is far too cheap. £1.25 to £1.50 seems more like it to me.

[ffp] 10/12/2009 23:12

Now I cannot see that, short term gain for the board who have been supported by us for years.

[quartix2] 10/12/2009 22:59

Well done guys fantastic news!

[ffp] 10/12/2009 22:21

Do you know I think I could have come up with that target today...

[sanity] 10/12/2009 22:17

Hoodless update

CybIT Holdings (CYH, 70.5p, £19.4m) The share price has risen by 96% this morning following a cash acquisition by Bidco, a private equity firm, for Cybit at 75p per share, which values the business at £22.8m. We have been buyers of the stock since September. We reduce our recommendation from a Buy to a HOLD, but upgrade our target price from 56p to 75p.

[sanity] 10/12/2009 21:26

From July Results - Is Cybit only worth £22m 75p a share Current PE 10 - on todays price?

Financial Highlights:
* Revenue increased by 30% to GBP25.5m
* Profit before tax increased by 27% to GBP2.1m
* 14% year on year organic growth excluding Truck24
* Net Asset Value up 16% from GBP12.1m to GBP14.1m
* GBP2m reduction in year on year operating costs
* Operational cost cover from free cash flow increased from 71% to 82%
* Earnings per share increased by 52% from 4.65p to 7.06p
* Internal lease book represents GBP8.2m of future profit which will be recognised
over the next three to five years
* New three year GBP4m committed revolving credit facility agreed with HSBC
* Application being made for cancellation of Share Premium account to facilitate
future payment of dividends

[ffp] 10/12/2009 21:01

singinsmythe >>> thanks for that.. I am at £1.35, been here a long time, Would have been happy for the longer term, but ther ya go.

Do we have to sell, I assume so?

[buenos aires] 10/12/2009 20:20

Sanity
If you are a small shareholder like me ,you are better off voting NO ,as there is absolutely no reason to go along with all these shenanagans .
Strangely as it sounds ,a co like MPS ,who is mainly owned by the institutions and losing their shirt ,could recoop their losses and show a small profit by buying Cybit at £30m . Not the best deal for us ,but better than the present offer. Interesting to see if the institutions work like the freemasons.!!
I have half expected Cybit to announce the purchase of MPS as their present shareholders must be exasperated with their performance and keen to join world class leaders . Sort of hoping for a divi to be announced ,but was not too bothered .
Instead what we got from the board was the usual from the stock market.
No interim announcement and what looks on the surface as a fait-acompli .
Its time we as shareholders took a stand and acted as one ,and in this case we have nothing to lose . Perhaps its time to look at the share registar,!!

[cheshiremoggie] 10/12/2009 20:13

"Of course it is just a co-incidence that the CEO switches from big cash bonuses to big share options just before a takeover though!"

Exactly! Very fishy.

CM.

[sanity] 10/12/2009 18:22

ba,

I will be rejecting the deal though showing a nice profit. I do not feel the directors have been straight with us on this. As I have said on other CYH threads I am hoping somebody will see the value here and counter the offer.

I am sure if this deal does go through that when market conditions improve the the company will be floated closer to £200m.