Netdimensions Share Discussion Threads

[aishah] 20/2/2017 15:12

Learning Technologies Group has announced that the resolutions put to shareholders at today's General Meeting, in relation to the recommended offer for NetDimensions and the conditional Placing to raise approximately £46.5m, were passed.

First closing date for acceptance is 14th March

[brummy_git] 10/2/2017 08:49

To me, the main reason LTG are buying stock in the market, is simply to deter others from bidding - which on the face of it appears to be a good sign for NETD shareholders, as it implies LTG believe there is a real chance of a competing offer been put on the table. Here's hoping they are right...

[longshanks] 09/2/2017 23:59

I don't know how to read LTG buying stock in the market.I guess the more they buy below £1 the more they save, but I wonder too if they are hedging a little against a competing bid.They are not buying enough to block a bid at say £1.20 but should someone do so (and succeed) - the profit on those shares bought sub £1 would generate a nice return to offset against costs.

[brummy_git] 09/2/2017 18:18

Looks as though LTG is pretty keen to get their 100p bid done and dusted, and sees the real risk of another competing offer materialising, given that it has just acquired 1 million shares at around 98p each in the market.

www.investegate.co.uk/learning-tech-gp-plc/ltg/purchase-of-shares-in-netdimensions/201702091654565407W/?fe=1&utm_source=FE%20Investegate%20Alerts&utm_medium=Email&utm_content=Announcement%20Alert%20Mail&utm_campaign=Learning%20Tech%20Gp%20PLC%20Alert

[b1ggles] 09/2/2017 16:36

Hmm, in which case there seems little point in using the word 'irrevocable' in the first place. Maybe there's small print...

[brummy_git] 09/2/2017 15:26

Yes, J777J is right - it appears pretty simple just to unwind the LTG deal with a competing offer pitched at 110p or above. I didn't notice any break fee either

[j777j] 09/2/2017 15:10

Why this then?????".......or if a third party announces a competing offer to acquire the entire issued share capital of NetDimensions which is at a price equal to or greater than 110 pence per NetDimensions Share."

[b1ggles] 09/2/2017 15:02

I'd like to believe in a counter-bid (esp as I was disappointed in the 100p offered) but how can it be feasible if directors and 'other major shareholders' have provided irrevocable acceptances in respect of over 56% of the shares in total?

[j777j] 09/2/2017 12:15

Gets my vote.I consider the offer at 2 x revenues for a co with £17 million in recurring revenues and a global footprint, is far to cheap.


150p gets my vote reluctantly.


From the research note in the header...




"If NETD can manage the growth effectively, we continue to see significant upside, as the shares trade on an EV of 0.9x our FY17e revenues, compared to the group’s larger US peers (its key competitors), which typically trade at 2.6-6.8x revenues."

[brummy_git] 09/2/2017 10:26

Reasonably chunky volume going through this morning, which suggests to me that at least someone believes another bid is a real possibility

[j777j] 07/2/2017 08:38

Say a cash rich US based co came in with a 120p cash offer,they would clearly win with no need to raise cash for the purchase.The way the US co's operate,it is a possibility.Meanwhile why take 96.5p now when you can earn another 4.5% in less than 8 weeks.

[j777j] 06/2/2017 14:07

Plot thickens.....

FT

NetDimensions, the Aim-listed software maker, jumped 24.2 per cent to 97.5p after agreeing to be bought for 100p a share by sector peer Learning Technologies, which closed 8.3 per cent lower at 41.3p after it launched a share placing to fund the deal. Traders saw a slight possibility of a counter offer, with a US company rumoured to be considering its options having been involved in the auction process

[j777j] 06/2/2017 08:25

Of course post Brexit the bid is only worth 80p to a foreign buyer if you take into account sterling's 20% odd fall.


Will be interesting to see if this rather mean bid attracts a counter from a foreign company.



Fingers crossed.


The fair price should be closer to 150p

[aishah] 05/2/2017 22:08

Same editorial team in place at Techinvest. And they are still the investment manager of the MFM Techinvest Technology and MFM Techinvest Special Situations Funds. Only tipsheet to put money where its mouth is. Dyor

[pentangle] 05/2/2017 21:48

AISHAH, The Techinvest newsletter and the Techinvest funds are not in any way connected, although they used to be. I believe Techinvest is owned by McHattie Publications these days so basically just another tip sheet!

[aishah] 05/2/2017 20:14

See note 8

[brummy_git] 05/2/2017 19:15

AiShah - LTG reckon 100p/share equates to £53.6m on a fully diluted basis

www.investegate.co.uk/learning-tech-gp-plc--ltg-/rns/proposed-recommended-cash-offer-for-netdimensions/201702031551350320W/

[aishah] 05/2/2017 18:44

oops, I had an error in the EV calc. Edison have a revenue fcst of $31.5m for 2017. Shares in issue 51.2m, so based on that I make it 1.70. Bid of 120p takes us to just over 2x, 1.40p to 2.5x.

Incidentally Techinvest have 50,000 in their Trader portfolio and probably a chunk in one of their quoted funds. They've been consistently saying NETD was very undervalued. So will be interesting to read their view next month.

[brummy_git] 05/2/2017 18:13

AiShah - 100p equates to £53.6m, which after deducting $10.5m of Dec'16 net cash, equates to circa 2x FY17 forecast sales of $28.4m (at $:£ 1.125)?

Agreed though that LTD's offer is still not a knock-out price.

[aishah] 05/2/2017 17:51

So FY17e EV/sales of just 1.33! Way below US peers which are over 2.5x. Surprised a US suitor(Workday?) is not interested. Surely we're being sold rather cheaply here.

[brummy_git] 05/2/2017 14:59

According to the FT yesterday, "Traders saw a slight possibility of a counter offer, with a US company rumoured to be considering its options having been involved in the auction process."

[j777j] 04/2/2017 09:35

But how much of that was simply because of the placing?


I am surprised it was not a foreign bidder,after all the talk about sterling's fall creating lots of bargain in the UK.

[longshanks] 04/2/2017 09:26

Seeing how LTG's share price dropped on the news - I am not sure it is that bad a deal for us.I half suspect we will see another offer though.

[pentangle] 04/2/2017 08:54

Surprising purchaser. I thought it was a given that one of the big US companies in this space would snap it up. At £1 the PSR is about half of theirs.

I said a while back I would be happy with a quid, but I was certainly hoping for more. Middle to end of April before we see the colour of their money I reckon.