Equals Share Discussion Threads

[owenski] 02/11/2023 08:52

gerihatrick, agree, I remember he's said those kind of statements a few times, therefore if the market doesn't appreciate the value of the company, a 120 bid would be kind of incongruous with his view.

[qs99] 02/11/2023 08:42

I agree TS I sense a hostile bidding war will start now ...let's see...DYOR

[gerihatrick] 02/11/2023 08:33

there are 2 statements from Ian which are relevant to the RNS. One last month was that they are taking market share from the big banks, plus the pent up demand in Europe.

Second is in his comment to Paul Hill where he said that he felt the market did not appreciate the complexity of their technology. Those comments indicate the opinion that he feels the market undervalues the company, hence this move. He is due to speak at the Mello Conference later in the month, but that may not present if anything happens in the interim.

[owenski] 02/11/2023 08:29

They're expecting Equals Money Europe to start contributing by the end of the year, this vertical hasn't even taken off yet, so it would be a shame to find this is subject to a low ball offer.

I can't see that myself, the BoD have some idea of the scale and value of their business, just find it odd that they're touting around.

I've no idea what will happen here but in the recent IG interview a broker target of 174 was discussed and IST thought it wasn't unrealistic, so I'd expect north of that as an offer. IMO

[toolsmoker] 02/11/2023 08:19

I can see a hostile bid coming after yesterday rns .I'd imagine a few have been circling

[qs99] 02/11/2023 08:15

Some very chunky buys coming in, wonder if competitors that were "having a sniff" now realise they could be in a bidding war and are stocking up on EQUALS shares quickly for Xmas so even if they don't get the firm, they can at least make some profit?

DYOR

[66fingers] 01/11/2023 23:30

I'm only a novice but the shares have only gained 20% on the bid speculation. Even if the talks come to nothing and they drop back 20%, I'd be surprised if they didn't gain that back over the coming year, particularly in the light of what IST said in the mello interview last week.

[qs99] 01/11/2023 21:39

£2+ would be a decent result albeit a shame given the potential here
DYOR

[anon12345] 01/11/2023 20:07

IST has more like 10m shares once you add in ~8m options and grants (I'm assuming everything would vest in a change of control transaction), so it's a potentially big pay day.

[doobz] 01/11/2023 19:55

Let’s hope both the mentioned parties show an interest as that’ll be the best chance of securing £2 plus from here. Little bit of risk here for the next month as if no interest is show I’d imagine the share price won’t like it one bit

[amt] 01/11/2023 19:15

Sopheon doubled yesterday on bid. I expect this wouldn't be sold for less than 2 quid

[masurenguy] 01/11/2023 18:01

IST has 2.2m shares and is in his 60's so he probably has a predetermined timeframe to exit and an acceptable price target associated with it. Any exit deal could also involve him and RC remaining in place, with some additional earn-out targets both to reassure a predator and to sweeten the exit deal for both of them aswell. At this stage it is still all speculative so lets see how this pans out !

[eagle eye] 01/11/2023 17:48

What a pain.
The UK is short of high quality growth companies with plenty of scope for expansion.
Lots to like here and lots to not like if it's a lowball premium.

[big7ime] 01/11/2023 16:53

What would be in it for IST and RC to sell out at this point in time? The shares seem cheap, don’t think it’d go thro unless spectacularly higher than today’s sp, IST loves it you just know, he won’t want to retire, but these things get the share noticed and can’t do any harm. They must be concerned at the low share price imo, hence this strategy
And I know Schroders want 185

[dave2608] 01/11/2023 16:49

I think this company is going places but the nightmare scenario for me would be IST caving in on a lowball offer. Fingers crossed on that one.

[nfs] 01/11/2023 16:44

Rich people got rich in part by not overpaying!The management team will cash in but then stay on with incentives/options ahead of a crystallisation event in the future. Win win!!

[dave2608] 01/11/2023 16:43

What I'm trying to say is that although the long-term prospects here look excellent, If you're not careful you can get trapped in short-term on a spike. You've seen the same thing happen with Cornerstone. But who know's what's going to happen.

[dave2608] 01/11/2023 16:36

Indeed small change but these suitors will be hard-nosed businessmen. There were similar dealings 2 or 3 times recently with The Hut Group (THG). The share price rocketed only to fall back once impasses kicked in. From 120p back to the current 60s. I don't know who walked away, THG or their suitors. It certainly led to a few weeks of high volatility in the share price. I actually think long term this is a £2 share, given time even higher but no deal and it will retrace. Unless of course a beating expectations trading update.

[intoodeep] 01/11/2023 16:24

Surely, this would be pocket change money in reality for either of the suitors named and they could easily afford a premium price in reality?

[dave2608] 01/11/2023 16:21

Surely Ian Strafford-Taylor won't allow this to be taken out cheaply? Surely not, he looks far too level headed. It's got to be £2 minimum hasn't it? That being the case it'll probably be an impasse. The suitors will lowball and IST will highball. It all depends on the resolve of both parties I suppose.

[maddox] 01/11/2023 16:11

Brokers consensus share price target is 171p some 51% above current 113p. I guess we're likely to be taken out cheaply yet again!! :-(

[qs99] 01/11/2023 16:08

I agree Allstar, reckon they were approached, so strategic review etc.

If any credibility from interested parties, they should hold out for £1.60-£2 IMO given scalability of the tech and how far advanced they are. With a bigger beast behind them they could then play a 3-5 year game with investment and not worry so much about short term profits for instance.....that could have massive value to competitors or PE firms....DYOR

[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?