Equals Share Discussion Threads

[allstar_07] 01/11/2023 15:48

I guess we take the rns at face value and therefore we approached these companies. But whats the likelihood it was the other way around which then forced the strategic review? I have no idea but seems odd you would mention the companies you were asking for an offer from?

[earwacks] 01/11/2023 15:43

Not been shy of flirting with an exit strategy in interviews. While markets are rife with M&A might as well test the water to sort the talkers from the walkers. Really no hurry as they can just keep adding value. You would think any serious predator can see that and would be keener on striking a deal now than next year.

[intoodeep] 01/11/2023 15:30

Very interesting, surprised the company went public with that level of details?

EQLS is likely to generate say £100m this year in revenues, what would the be the possible likely effect of any moves towards partnering with those types or a complete takeover ie eqls be attractive for other non revenue related reasons? Too many questions I have but any feedback appreciated.

[qs99] 01/11/2023 15:26

5 X 2024 revenues would be nice BG ! I could live with that if that was the valuation.....!

DYOR let's see, but brokers TP at least please Board of Equals...

[maddox] 01/11/2023 15:19

The fact that it is two very different suitors - suggests that this isn't a conceived strategy....more likely to be opportunistic approaches that they have been encouraged to entertain.

[masurenguy] 01/11/2023 15:16

Fleetcor is listed on the S&P 500 and MDP is a major PE company specializing in leveraged buyouts of privately held/publicly traded companies. These are two US big beasts in the public/private sectors based in Atlanta and Chicago respectively. I doubt that IST is just kite flying but since they are under no financial/market pressure to sell it will be interesting to see whether initiating such a process unearths a genuine interested party at a premium that would persuade them to sell at this stage.

[brummy_git] 01/11/2023 15:14

Both Fleetcor Europe ($16bn Mrkcap & trades 5x EV/revs) and Madison Dearborn Capital (Investments in Paypal, Moneygram & EVO Payments International) appear to be serious & credible players in x-border payments

Time to be patient me thinks.

[earwacks] 01/11/2023 15:00

Why would they need to raise money having just unlocked 25 million and intend to pay a maiden dividend? Seems likely to me that a quality business like this is on a few radars.clearly a better business that many competitors, as they can maintain and actually increase margins in a crowded arena. Where's Brummy? Hope he bought his top slice back! They have two potential bidders that have been given the opportunity to come up with something substantial by end of november, but prefer to remain independent. Trading inline with great prospects. Could get hostile. Pretty sure there will be others sniffing around. Enjoy the ride and hope in the meantime we get our maiden dividend. Oh here he is!

[slogsweep] 01/11/2023 14:49

thanks I'll look into it

[intoodeep] 01/11/2023 14:35

Slogsweep, I beg to differ there, CSFS are very cheap alterative to invest in.

Major new broker note from Shore Capital (new broker for CSFS) coming soon when they initiate coverage after a fantastic trading update last week.

[slogsweep] 01/11/2023 14:31

held these for 6 tears just beginning to show a profit was hoping for £2 in a year or so but a take out at a low ball offer below 150 would be bad, there are precious few alternatives to invest in as it is. Still sore over Kape technologies six months ago.

[intoodeep] 01/11/2023 14:29

Maybe Cornerstone (CSFS) will make an offer......stranger things have happened?

[anon12345] 01/11/2023 14:26

Ian is in his 60s, has a young family, and probably doesn't want to do this for another 10 years.

We have the luxury of being under no pressure to sell - business is great and he can keep going - but if someone wants to pay a big premium now, then it's worth entertaining.

[arieljcohen] 01/11/2023 14:11

I don't understand why EQLS would put itself up for sale in this cr*p market when valuations are at multi-year lows when they have so much growth ahead... Maybe senior management want to cash out? Anything below 160p would be a disaster

[anon12345] 01/11/2023 14:01

Let's see. Fact they've hired advisors and been in contact with two potential buyers suggests it's more than puffery.

Payment company multiples have been destroyed in last 3-6 months so my assumption is that any offer will be low ball and insufficient to get a deal done.

[daveme] 01/11/2023 13:57

So Equals has put itself up for sale, and I was considering increasing my holding on Monday just gone. Doh!

Will be interesting how many bidders they get. I for one was hoping for £3+ in a couple of years, hence I won't be too disappointed if nothing comes of it, not unless we get a bid of £2.50+ when I would be happy to take my money and move on.

Interesting times.

[sphere25] 01/11/2023 13:46

Managed a few at 108p on that RNS. Nothing concrete in there but that sounds like the rumour isn't so uncooked and maybe someone has put a number out there so the buying is starting to come in.

Ooerr...

Still a tricky one. It would be nice if there was a bidding war at a substantial premium.

Might be a dreamer here but worth a go.

Downside looks capped at around that £1 and slightly over mark. You'd think 108p would be hit again on fundamentals too.

So let's see what happens.

All imo
DYOR

[ashleyjv] 01/11/2023 13:44

The Board of Equals Group plc ("Equals" or the "Company") (AIM: EQLS ) notes the recent market speculation, and confirms that it is conducting a review of the Company's strategic options (the "Strategic Review"). As part of this process, the Company has contacted a limited number of potential counterparties including Fleetcor Europe Limited and Madison Dearborn Partners, LLC to assess whether such parties could put forward a proposal that would deliver greater value to Equals' shareholders than pursuing a standalone independent strategy. Any such proposal could include an offer for the entire issued and to be issued share capital of the Company.

The Board remains confident in the long-term prospects of the business and believes that the Company is well positioned to create significant value for shareholders as an independent company. Current trading remains in line with the Board's expectations.

There can be no certainty that any changes will result from the Strategic Review. There can be no certainty that any firm offer for the Company will be made, nor as to the terms on which any firm offer, if made, might be made. Shareholders are advised to take no action at this time .

A further announcement will be made when appropriate.

In accordance with Rule 2.6(a) of the Takeover Code, by not later than 5.00 pm on 29 November 2023, each of Fleetcor Europe Limited and Madison Dearborn Partners, LLC must either announce a firm intention to make an offer for Equals under Rule 2.7 of the Takeover Code or announce that it does not intend to make an offer for Equals, in which case the announcement will be treated as a statement to which Rule 2.8 of the Takeover Code applies. This deadline will only be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Takeover Code.

As a consequence of this announcement, an 'offer period' has now commenced in respect of the Company in accordance with the Code, and the attention of shareholders is drawn to the disclosure requirements of Rule 8 of the Code, which are summarised below.

For more information, please contact:

Equals

[phone]

[qs99] 01/11/2023 13:44

so there you go, exploring all options! Well 20X EV/EBITDA would be nice thank you.....DYOR, hope this sort of thing isn't coming too early in its growth phase, be interested in Brummie Gits view on why now? DYOR

[qs99] 01/11/2023 13:34

Well said and absolutely spot on, cannot see how any fund raise would be required, yield is now the significant news....DYOR

[squeakeasy] 01/11/2023 13:30

They dont need to raise £5 from shareholders, esp given they have just received court approval to return £25mm to shareholders. What is new is 1.5p dividend four 2023 instead of expected 0.5p. ANy hint of a takeover and these would be way north of 120p imo.

[qs99] 01/11/2023 13:24

good to see yield can now start to happen, given size of company, may attract some income funds as well, let's see.....all helps the story.

A bid would be lovely, but I've been consistent about the scalability of this firm and desire to see it get to a billion market cap!

DYOR

[allstar_07] 01/11/2023 13:21

Rns....on divi

[sphere25] 01/11/2023 12:56

Definitely a rumour circulating. There is a new article dated 1st November 2023 11:27am:



It is "UNCOOKED" though.

The definitions are below.

UNCOOKED: Market gossip as Betaville receives it. This scuttlebutt has just come in and hasn't been checked with all of Betaville's well-informed RARE sources let alone formal journalistic channels (public relations executives, bankers etc). The rumour might be total codswallop, rubbish or nonsense - but then again there may be something in it, so it's worth airing on Betaville.

RARE: Market gossip that has been tested with some of Betaville's USUALLY WELL-INFORMED sources. In fact, Betaville might have spent several days or weeks working on this story. However, the rumour hasn't been tested through formal journalistic channels (public relations executives, bankers etc). The scuttlebutt might be complete codswallop - but then again there may be something in it, so it's worth airing on Betaville.

WELL-DONE: Market gossip that has been checked with some of Betaville's TOP sources. However, nothing is certain in life, so the rumour might be wide of the mark!



Early reaction says the market doesn't buy it - it is only a 7% move higher and plenty of shares available now well under the offer of 111p. You would have thought any bid would be at a nice premium to the undisturbed price, particularly in light of the price being well under the recent highs.

This is all hit and miss. If the buying significantly balloons and the price pops higher through the afternoon, then the company might have to comment. A move like that could suggest someone is in the know i.e. something firm has leaked.

Watching in from the sidelines, but action like this, it is just very hard to profit from really. Very easy to be on the wrong side of a takeover rumour spike.

All imo
DYOR

[mcl1] 01/11/2023 12:51

I'm sure a takeover would need to be at a significant premium with the company on a positive trajectory and cash accretive.