Blancco Technology Share Discussion Threads

[supernumerary] 06/5/2016 15:47

B1 - yes, I know, thanks - I was really just commenting obliquely on the absurdity of an arrangement that left some shareholders (possibly many - I've no idea of the shape of the register either before or after the tender) with trivial holdings. They really need to take the opportunity to clean up the register while they can.

Anyway, we'll see what transpires - it looks to me like the entire exercise was done to provide the directors with a clean (and very profitable) exit, so I guess nothing else will get much attention.

[b1ggles] 06/5/2016 14:51

Super, if you really want the divi you only need hold them till next Thu, which is ex-div day. But, personally, I take little notice of such things when buying/selling, as the price changes accordingly on the day.

[nurdin] 06/5/2016 14:23

Perhaps you should look at the Institutional holdings.Directors holdings were peanuts in comparison:

[supernumerary] 06/5/2016 11:50

Thanks, Biggy. Big decision then, should I dump my residual 60-odd shares, or wait for the divi? Think I'll wait - must check if they have a DRIP - this one could run and run... ;¬)

[supernumerary] 06/5/2016 10:40

There's a divi due soon isn't there?

[nurdin] 06/5/2016 09:33

edited: Just seen the Edison note .The forecasts are for eps of 11.4p in 2017 based on 56m shares in issue.Apologies.

[supernumerary] 06/5/2016 08:31

Well I hope they don't apply 98% across the board - there must be lots of holders like me with a few thousand shares, so they'll end up with a register full of holders with a tiny number of shares. Better to buy out completely everybody with less than say 5K or 10K shares then pro rata the bigger holders.

[cocker] 06/5/2016 07:10

Nurdin, I expect the board are likely to offer themselves some sort of share options where they can purchase £2.50 shares at around the 1p range, the usual AIM gravy train alway's run's for its Directors.

[62rick] 06/5/2016 07:10

I think they worked quite hard to achieve that price, timing of (held back) news about acquiring the remaining mobile operation, about 5 million shares placed in the market about a week ago, I'm sure a few other less obvious manouvers. Interesting that both the Chairman and Finance tendered all their shares.

[nurdin] 06/5/2016 06:51

Worrying that the FD has sold most of his holding.Must be a good reason or some cunning strategy!

[masurenguy] 06/5/2016 06:21

Strike price came in at 240p.

Blancco Technology Group plc
Result of Tender Offer
Tender offer fully subscribed, with £50 million to be returned to shareholders
20,833,333 Ordinary Shares to be repurchased at 240 pence per Ordinary Share

Blancco Technology Group plc ("Blancco" or the "Company") today announces the final results of the Tender Offer, details of which were set out in the circular to Shareholders published by the Company on 6 April 2016 (the "Circular"). A total of 26,782,040 Ordinary Shares were validly tendered by Shareholders. A total of 20,833,333 Ordinary Shares were accepted for purchase by Peel Hunt at a price per Ordinary Share (the "Strike Price") of 240p, for a total cost of £50m. This represents approximately 26.4% of the Company's Issued Ordinary Share Capital as at 5 May 2016.

In accordance with the terms of the Tender Offer, all valid tenders submitted at or below 240p per Ordinary Share, as well as valid tenders submitted as Strike Price Tenders, will be scaled down pro-rata to the total number of Ordinary Shares tendered by Shareholders. Therefore, although 21,264,053 Ordinary Shares were tendered at a price of 240p or less or as Strike Price Tenders the total number of Ordinary Shares accepted for purchase was 20,833,333. The purchase resulted in a proration factor of 98.0% of the Ordinary Shares tendered at or below the Strike Price being accepted. As set out in the Circular, Peel Hunt will pay for the Ordinary Shares accepted. Following the purchase, as further set out in the Circular, Blancco will buy back from Peel Hunt the Ordinary Shares purchased by Peel Hunt under the terms of the Tender Offer. The Company then intends to cancel such Ordinary Shares, reducing the Issued Ordinary Share Capital from 79,022,599 Ordinary Shares to 58,189,266 Ordinary Shares.

[clausentum] 04/5/2016 10:27

The market has trended to a current valuation of 230, it will be interesting to see if the Dutch auction strike price comes to the same conclusion!

[welsheagle] 01/5/2016 19:41

So if a shareholder sets a strike price of 245p, there would be a gain of 10p per share (less brokers costs) as the current buying price is 235p, if the shares are bought back afterwards.
Any comments on this scenario.

[nurdin] 26/4/2016 18:47

Its hard to guess what the share price will do after the tender offer is done and dusted.I cant quite agree with Clausentum however as I think the higher the strike price the fewer number of shares will be taken out of circulation, which in turn will mean eps would not be as high as if the strike price was at the lower end.That in turn would mean a higher rating and perhaps a negative effect on the share price But I am happy to be corrected.

[johnv] 26/4/2016 18:23

I bought some shares last week after the tender offer was announced and barclays have sent me the form to sell them. Lol. As I said before those shareholders not interested in the future will sell out and their shares will be cancelled. No free floating shares to pick up. Waiting till after the offer to buy could mean you chasing that price up. If everyone was given a share of the payout, then we would still have weak holders slowly selling over the next year.

[clausentum] 26/4/2016 13:27

The demand for selling shares, which determines the strike price, will be an opinion poll on what investors really think of the prospects for Blancco. If the strike price is 250 I would expect the post tender price to be higher than the strike price, and if it is lower than 250 I would expect the post tender price to drop below the strike price.

[welsheagle] 26/4/2016 10:22

What is the likely BLTG share price after the tender offer i.e. What price could we buy back afterwards.

[rivaldo] 24/4/2016 07:05

The IC have just posted their individual verdicts on numbers 51-100 of the top 100 companies on AIM by market cap - they say Buy for BLTG:



"91. BLANCCO TECHNOLOGY GROUP

Blancco Technology Group (BLTG), until recently known as Regenersis, has been reborn as a ‘pure play’ software business. In February, the group sold off its repair services arm in order to focus on Blancco, its key data erasure business, hence the subsequent name change. A sizable portion of the proceeds are now to be returned to shareholders via a £50m tender offer.

Revenues and reported operating profits fell in Blancco’s half-year to December 2015, but that reflected a change in the business mix and the adoption of IFRS accounting for subscription sales. But at the time of publication, the IC noted that invoiced sales figures from Blancco show a 40 per cent growth rate at constant currencies, which goes some way to explaining the change of tack.

The transformation also involved the relocation of the group’s headquarters to Atlanta, Georgia, in order to tap into the world’s biggest IT marketplace. Market penetration will be helped along by the September acquisition of the Tabernus business group, a privately owned provider of software erasure. Blancco’s share price has performed well since publication of its interim figures, but it still trades on an underlying earnings discount to rivals and growth opportunities abound. Buy."

[rimmy2000] 21/4/2016 15:25

And vagaries of directors 'may tender all or part of their holding'. Seems like shifty behaviour. Even if not shifty far more complex than a simple redistribution.

[masurenguy] 21/4/2016 10:40

I don't really understand why they went the tender route either since it really muddies the potential valuation metric. Therefore I have taken profits and exited today. Will continue to watch and review and maybe look to re-enter when the tender process has been finally completed.

[rimmy2000] 21/4/2016 08:50

Same as PJ1 I sold today. WTF they could not just distribute proceeds of sale simply is beyond me. Company act like a load of spivs in the past and I was happy to sell out at roughly b/e. Good luck all holders

[pj 1] 20/4/2016 14:10

Well,they have beaten me so well done BLTG. I am a firm believer in KISS and I cannot make head nor tail of this. How much has it cost the Company (and therefore shareholders) to arrange this overly complicated fiasco? Have they declared in anywhere.

I have therefore sold over half of my holding today banking a reasonable profit.

[clausentum] 20/4/2016 10:31

I sold my 7794 in the market, rather than take the risk on possibly getting, or not getting, another 10p through the auction. Until there is a set of accounts for just Blancco there are too many variables to assess the business.