Equals Share Discussion Threads

[anon12345] 20/3/2024 10:42

Great news all around - trading update suggests they are slightly ahead of estimates, and second bidder emerging fundamentally changes the negotiating dynamic with Madison Dearborn in EQLS' favor.

Doesn't make sense this isn't already 140p or higher based on likelihood of 26-28m EBITDA, growing 30% p.a., and with possibility of being bought out in the very short term in a live auction scenario with at least two real bidders.

[eagle eye] 20/3/2024 10:32

If you think 150p will do then you're being short changed.
Equals has multi-bag potential over the next few years, so why scalp for just a few pennies.

[carcosa] 20/3/2024 10:31

At first I thought this may be old news coming to light. If you recall there were discussions with various parties and as I explained in an earlier post they do not have to be 'announced' under certain conditions. It was thought there were up to six potential interested parties.

However on this occasion it seems that Embedded Finance Limited ("Railsr") and TowerBrook Capital Partners (U.K.) LLP made an approach to Equals rather than the other way around so on balance this appears to be a recent event.

Railsr, the London, U.K. embedded finance startup formerly known as Railsbank and once worth nearly $1 billion, announced in March 2023 that it has been acquired by a shareholder consortium; and as part of the deal, it’s going into administration so that it can continue as a going concern as it restructures. The consortium, trades under the name Embedded Finance Ltd.

Railsr was an early mover in the world of so-called embedded finance — fintechs that build and run APIs for banking, payment cards and credit products, which are in turn used by other fintechs; so you can see some synergies woth Equals already; but Railsr operated in multiple jirisdictions around the world so potential benefits for Equals too.

TowerBrook is an active investor within the financial services sector. They target investments in both capital light service providers such as technology, network operators, distribution, and outsourcing companies; as well as balance sheet intensive businesses such as insurance and specialty finance companies.

They have a very large list of Financial Service Investments as well as Healthcare, Industrials, Technolgy, Media Services. TowerBrook Capital Partners have raised in excess of $22.8 billion to date (all be it the parent company)

So all I can suggest is that today's announcement regarding Embedded Finance Limited ("Railsr") and TowerBrook Capital Partners seems credible.

hxxps://www.towerbrook.com/our-portfolio/
hxxps://techcrunch.com/2023/03/09/railsr-off-the-rails-embedded-finance/

[redartbmud] 20/3/2024 10:27

Warming up nicely.
Dithering Dearborn may be pipped at the post.

red

[aishah] 20/3/2024 10:14

Surely the Yanks will have to speed up their due diligence now :-) Will probably add on any big dips.

Anything upwards of 150p+ will do.

[ltinvest] 20/3/2024 10:06

The news article reads as potential merger and seems more like equals would be buying Railsr but the RNS suggests that Railsr and towerbrook would aquire equals. Either way a nice bit of competition might spur madison to table an offer

[ashleyjv] 20/3/2024 10:06

It looks as if we were all right, extension and an offer lol

[owenski] 20/3/2024 10:04

So at least 2 parties in the fray now.

[qs99] 20/3/2024 10:01

haha, classic, I write that and up posts an RNS!

At least that talks of an "offer" not a merger....

DYOR...

[qs99] 20/3/2024 10:00

Looks interesting, but a start up effectively, parent company only relatively recently created from Companies House it looks like, so how credible is it? DYOR

Either way, nice trading update with material levels of growth still. DYOR

[velvetide] 20/3/2024 09:59

competition, 150p today ?

[froggyranger] 20/3/2024 09:58

Does seem to suggest in the release that there is only the one party still interested as they specifically mention “still in talks with Maddison” and not “still in talks with interested parties”.

Not sure whether to see this as a good or bad thing.

[zebbo] 20/3/2024 09:27

Looks like things are warming up from another direction

[zebbo] 20/3/2024 08:07

Main takeaway is strong growth continues. Buyout or no buyout share price should climb

[amt] 20/3/2024 07:53

Yes, maybe the buyer wants to see the audited results before commitimg but risks higher offers. I suspect the buying price will be 1.60 to 2.00 quid.

[earwacks] 20/3/2024 07:52

Why here? Strong update. Looks to me like the potential sale is more about self promotion. Who knows, offer maybe still be forthcoming, but acceptable? Possibly not

[slogsweep] 20/3/2024 07:49

The extension is just past the results date on 15/4 which may be significant.

[amt] 20/3/2024 07:36

So heading for 100m turnover and profit of about 12m I would have thought.
Pe should be about 20 or about 1.30p

[brummy_git] 20/3/2024 07:33

Equals' PUSU deadline extended this morning by another 4 weeks until 5pm 17th April.

To me, this looks positive. Find out why here.

[masurenguy] 20/3/2024 07:19

Trading Update, Strategic Review Update and extension of PUSU Deadline

Trading Update

The Board is pleased to provide an update on the Company's current trading, which continues to be in line with the Board's expectations. Trading in the first quarter of FY-2024 up to 15 March 2024 (the "Period") has continued the strong growth trajectory of FY-2023 with Revenues in the Period reaching £22.2m, up from £17.4m in the same period in FY-2023, representing an increase of 28%. In keeping with recent trends, trading has been robust across the business with particularly strong growth from Solutions. Further detail will be provided in the Company's final results which will be released on Tuesday 16 April 2024, along with a further trading update.

Strategic Review Update

On 1 November 2023 the Board of Equals Group plc ("Equals" or the "Company") announced that it is conducting a review of the Company's strategic options (the "Strategic Review") and that as part of this process, the Company has contacted a limited number of potential counterparties including 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 (the "Strategic Review"). The Board also noted in its announcement of 1 November 2023 that any such proposal could include an offer for the entire issued and to be issued share capital of the Company and as such the effect of the announcement was to commence an 'offer period' in respect of the Company in accordance with the Takeover Code. Whilst the Board recognises time elapsed since the commencement of the Strategic Review, it considers it to be in the best interests of shareholders that the Strategic Review remains ongoing to allow further time for it to reach its conclusion.

PUSU Extension

The announcement of 1 November 2023 stated that, in accordance with Rule 2.6(a) of the Code, by not later than 5.00 pm on 29 November 2023, 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 (the "PUSU Deadline"). That deadline was first extended to 5.00 pm on 27 December 2023, as announced by the Company on 29 November 2023, and then extended to 5.00 pm on 24 January 2024, as announced on 27 December 2023, and then further extended to 5.00 pm on 21 February 2024, as announced on 24 January 2024, and then further extended to 5.00 pm on 20 March 2024, as announced on 21 February 2024.

As part of the Strategic Review, discussions are ongoing between Equals and Madison Dearborn Partners LLC and, to allow further time for these discussions to take place, the Board of Equals has requested that the Panel on Takeovers and Mergers (the "Panel") extends the PUSU Deadline further. In the light of this request, an extension has been granted by the Panel and, in accordance with Rule 2.6(a) of the Code, Madison Dearborn Partners LLC is required, by not later than 5.00 pm on 17 April 2024, either to announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This revised PUSU Deadline may be extended with the consent of the Panel, at Equals' request, in accordance with Rule 2.6(c) of the Code. There can be no certainty either that an offer will be made nor as to the terms of any offer, if made. A further announcement will be made when appropriate.

[tightfist] 20/3/2024 07:16

Spot-on on both counts: the deadline is extended, and so are the talks until, at least, 33 hours after the FY results....

[colinroberts] 18/3/2024 17:00

These RNS 'forms 8.5, 8.3' etc should be collated elsewhere in a separate list - they don't half clog up the few bits of news we actually WANT to read....

[aishah] 18/3/2024 16:02

Revenue fcst is £114m for 2024. An exit based on multiple of that gives the following targets:
3x = £342m , share price = 182p
3.5x = £399m , share price = 212p

Shares in Issue = 188m. Stocko figures.
There's also cash of £18m on the balance sheet.

Personally I think this is a good risk / reward now with or without a bid. I have therefore added at 109p. Dyor

[gerihatrick] 18/3/2024 15:19

In view of his comments In the past I do not think he would regard 150p as adequate...imo. I hope I am proved right.

[masurenguy] 18/3/2024 14:01

There has been plenty to "talk about" over the past 5 months. Actions speak louder than words and we need to see some of the former rather than more of the latter, whether it relates to a viable third party deal on the table or an announcement of an ongoing continuation as an independent entity !