Equals Share Discussion Threads

[jias] 13/12/2024 13:51

I have held these shares for around 3 years. Takeout price is disappointingly low. I will not sell and will vote against the takeover.

[jias] 13/12/2024 13:42

The share register is not static. Any shares one individual sells could be bought by multiple new buyers, thus making the holder of the one retained share vote irrelevant.

[moonshot3] 13/12/2024 13:33

Is this an opportunity to realise further value when we think we have been sold at too low a value? "Yes."And if you don't believe me, check out I3E where a scheme of arrangement was used to complete a takeover this year. See October RNS for published results which refers to the requirements to pass the necessary threshold.

[moonshot3] 13/12/2024 13:28

You sell all your Equals shares now for circa 135p apart from 1 Equals share which you keep. You will have a vote on whether the transaction should be approved next year. You vote "no." If there are say 100 shareholders holding Equals shares and 51 shareholders with just 1 vote each, vote "no" the transaction will not go ahead.

[moonshot3] 13/12/2024 13:23

The transaction does not get approval under the scheme if 50%+ in number of the shareholders reject the transaction. For example, if there are 100 shareholders in total and 51 of the shareholders vote against. This gives an opportunity to realise value now and buy back in at a lower value, if the transaction fails. How? Read the next post.

[amt] 13/12/2024 07:09

Wishful thinking that a counter offer would come in after all this time.
The issue of valuation. It looks to me like it is being sold cheap but there was a lot of discussion about how much profit was coming from interest on deposits. OK at the moment but not good if interest rates fall.
I thought the Belgium acquisition would be transformational but not much news on that front.
Hence I sold out.

[gopher] 12/12/2024 17:23

I sold out yesterday, the market price seemed generous given only an extra 5p on offer to wait till Q2; no hard dates in announcement either.There is speculation here that a counter offer will emerge as company is being sold cheaply but for me alternative bidders have had a long time to think about this and sat on their hands. If they do exist, don't see why they would act now.

[fft] 12/12/2024 15:34

Some interesting RNS coming out that show decent purchases since the announcement. Are they just going to take the 5p difference (how long will they have to wait though ?), are they expecting a counter offer (who though ?) or something else ?

[darryn1] 12/12/2024 15:30

Paul Scott, who was not a holder, thinks that there is a chance of shareholders rejecting the deal (with only 16% irrevocable at this stage) and therefore suggests holders sell now rather than chance the deal lapsing next year.

[owenski] 12/12/2024 11:51

Paul Hill "trusts the management", whereas, I do not.

[daveme] 12/12/2024 11:44

It will be interesting to hear what Paul Hill makes of it.

[hutch421] 12/12/2024 11:20

I'm out too after 10 years or so but if the very possible no vote happens I'll be back in on the fall that follows. Worth a lot more than £1.40 in the medium term (IMHO of course!). Hutch.

[melcul] 12/12/2024 10:43

Columbia.... called the offer “absolutely ridiculous”, saying Equals had built a “strategic asset” worth “twice the price”

Err. an asset is only worth what someone is prepared to pay. The absence of small cap institutions could only mean that: Columbia decides to build their stake up to 29.9%, or lobby other funds to do the same, or conclude that there are no institutional buyers and now, with the irrevocables from founders we know there is 17% overhang. Or do Columbia have another plan - ie, to replace the board?

To repeat - an asset is only worth what someone is prepared to pay - a spreadsheet valuation means nothing. "teenager scribblers" never learn

[ashleyjv] 12/12/2024 10:00

Amt - Agreed

The plus points that made me choose GGP.
1, they now own 100% of the mine instead of 30%
2, they bought the mine at a hefty discount
3, they are now producing gold

It's a gamble but, I'm using profits (Free money) to buy them.

I wish you good luck in which ever path you take

Regards

[pol123] 12/12/2024 09:45

Sold 173k @134.5 this AM, happy with the final outcome

[amt] 12/12/2024 09:39

I have changed my mind and sold out. That's the benefit of BBs of quality.
Good posts indicating that 75% is uncertain and a close call.
The downside of perhaps 20 to 40% is greater than 5% upside.


ASH I know GGP very well having been in and out. It does look good now but I think the upside is limited. I did make a good return selling most at over 20p a while back.

[ashleyjv] 12/12/2024 09:32

AMT I've bought some GGP with the profits from here.
GGP have turned the tide and the share price is starting to rise

[masurenguy] 12/12/2024 09:22

Another perspective !

Not all cash bids are created equal
Why is Equals Group selling at a low-ball price to Lord Hammond of Runnymede’s crew?

Alakazam! Apparently that bit of hocus-pocus means “an instantaneous transformation or appearance that occurs by or as if by magic”. Or so says the Collins Dictionary. So, it looks a right misnomer for the bid vehicle, starring the former chancellor Lord Hammond of Runnymede, that has just unveiled a £283m agreed cash bid for the Aim-listed Equals Group. Far from appearing by magic, it’s the result of a tortuous 14 extensions to the “put up or shut up” (PUSU) bid deadline — even if the saga was started, in November last year, by a different crew to Hammond’s lot. Worse, at 140p per share, including a 5p special dividend, the price is pathetic, even allowing for the illiquid Aim market.

The Equals board, chaired by Alan Hughes, is selling out on the cheap: a 37% premium to Equals’ closing share price as long ago as October 31, 2023. Anyone would think Equals was having a rocky time. In fact, since switching its focus to business-to-business transactions, revenues have leapt from £29m in 2021 to £96 million in 2023 and adjusted ebitda is up from £1.1 million to £21m. In the first 11 months of this year, revenue jumped 38% to almost £120m.

Canaccord Genuity and Lazard, found the terms “fair and reasonable”, despite Canaccord analysts having had a 176p share price target for Equals in September of last year. Some investors are backing the deal, too, while Equals shares rose 12% to 134½p. Two co-founders, Stephen Heath and Ashley Levett — the Monaco-based investor embroiled in 1996’s Sumitomo copper farrago — have pledged their 14.2% stake. Schroders fund manager Andy Brough, with around 10%, said: “It’s an early Christmas present for Equals shareholders.” Far more on the money, though, is James Thorne of Columbia Threadneedle, with almost 12%. He called the offer “absolutely ridiculous”, saying Equals had built a “strategic asset” worth “twice the price”. He said that, due to Takeover Panel failures in allowing 13 months of PUSU extensions, Equals shares had been allowed to atrophy. The board is “selling this business with no premium whatsoever. He “intends to vote against” the deal.

Complete article:

[markie7] 12/12/2024 08:17

I'm out at 134. I don't trust this to complete and 6p isn't worth the wait. It is very clear some major shareholders are not onside, and if the company can't deliver the required percentages to the court then it won't happen. Why will happen now is that there will be detailed dialogue between the company and their advisors and the shareholders who are holding out. These conversations will be very tough indeed for the company directors, and there will be plenty of uncertainty for a while. The company will have to give regular updates on the level of irrevocables, and I bet it doesn't go up very quickly. Also very clear that some shareholders are sick of the continuous 'take-private' trend, and may use this high profile case as a cause celebre to tell private equity that they can't always get their own way.

[redartbmud] 12/12/2024 07:59

amt is right.
The Institutional investors would have no doubt have had their say on an acceptable takeout number. Maybe the 5p dividend was the clincher?
It might be low ball, but they are just playing a numbers game and will move on to the next investment. That's the way it works.

red

[amt] 12/12/2024 07:11

I think its highly unlikely it won't go through. They would never have gone down this route if they didn't have backing by major shareholders.

[66fingers] 11/12/2024 21:38

Still far from certain that the deal will go through.The Board have given irrevocable undertakings in respect of their shares but that's only 16% of the total. Needs a minimum of 75% for the bid to succeed and if a couple if the of the investment houses consider the bid to be insufficient, it won't go through. Maybe an argument for selling into the market now and forgoing the 5p divi. What's the phrase, a bird in the hand is worth 2 in the bush!

[amt] 11/12/2024 20:29

Are there opportunities?
Appart from Bango I haven't found any

[ashleyjv] 11/12/2024 17:21

I'm out too.
Sold for £1.34 on an average of 78p. I don't see the point on waiting for the extra 6p when there are a lot of opportunities out there