|A fond farewell to one of my favourite shares - Gyrus has never given me a sleepless night, excellent products, excellent strategy, and excellent management team.
I think a special thanks is due to Brian Steer who with his team have pulled off some remarkably smooth takeovers and integrations over the pond. US takeovers have historically been the kiss of death for UK firms. Gyrus has done it twice, doubling in size each time and kept the sales growing throughout - a truly magnificent achievement. Best wishes for your success in Olympus.
Its going to be difficult to replace this quality in the Maddox portfolio.
|Au revoir GYG - it's been a pleasure. 630p cash to be received no later than 15th February:
|Likewise. Wish there were more threads like it.|
|And from me too - it's been a civilised and balanced thread. FYI from today's Telegraph:
"Gyrus in focus
Keyhole surgery equipment maker Gyrus came sharply into focus yesterday as the proposed £935m acquisition of the group by Japanese camera giant Olympus cleared US competition hurdles.
The 630p-a-share deal was announced in November - news that saw the Reading-based group's shares spike by 50pc - and yesterday's development prompted a further rise of 24 to 620p.
The purchase must now gain approval from European competition authorities as well as Gyro's shareholders and is expected to be completed by February.
Gyrus makes a range of keyhole surgery equipment, including forceps to tiny cameras used to view internal organs. It has a division that concentrates on ear, nose, head and neck treatments, as well as another focusing on the lower abdomen.
The company also has a strong position in the US, which recently caused its numbers to be hit by the weak dollar. In employs around 1,600 staff worldwide.
While Olympus is best known for its more traditional cameras, the Japanese group is also one of the world's largest medical camera makers. The deal will further expand its position in the US.
Gyrus is led by chief executive Roy Davis, who was recently promoted after almost four years as chief operating officer.
Gyrus was floated 10 years ago and last year announced a 46pc rise in pre-tax profits to £10m on revenues 42pc higher at £213m."|
|I have been away and so missed the excitement.
Nice to see one bright spot though in what is generally a sea of red.
Might as well hold on for the full ammount now.
Thanks to all the contibuters on the thread.|
|Yep, even more so now after today's news. Good to see the February deadline for completion, which presumably explains today's rise - sooner than I thought it would be.|
Agreed, I would have expected anoter bidder to have thrown their hat into the ring by now. Also, the share price would have signalled an interest. This looks like a done deal.
|The offer document's being published, so the Offer looks nailed on - getting a bit late for other approaches now.
The share price should now approach the full 630p offered.|
|Ta for that WJ.
Tomatoman (good name!), we only know it'll be the "first half of 2008". I intend to hold and wait for a little while and if no further bid interest arises then I'll probaly sell too. I'd have thought we'll know fairly quickly if there's any other bidders out there.|
|Does anyone know when we're likely to see the money. I'm wondering whether it's worth selling now rather than wait.|
|rivaldo, I think the rule is that you have to bid at the highest price you've paid for shares in the market in the last 6 months. So they can't pay more than 630p in the market but they can pay less if people are willing to sell.|
|Well , I never did get a dividend off Gyrus despite holding them for best part of a decade.I don't think I have ever had a dividend from any of my tech stocks.Still , not complaining here.I think I made the right decision to unload on Monday morning - I can't see a counterbid and it looks like the market suspects not either - there is no optimism priced into todays numbers.|
|Your welcome rivaldo|
|Many thanks grigor. Worth holding on to await developments I think. J&J would be nice.....|
... The offer, which values Gyrus at £935m, could be high enough to ward off interest from other bidders, although Paul Cuddon, an analyst at KBC Peel Hunt, said that Johnson & Johnson is unlikely to be comfortable with Olympus entering the market for general electrosurgical devices and may consider a counter-bid. Companies such as Stryker, ValleyLab and Pentax were also seen as possible suitors to rival the Japanese company's ambition. Mr Cudden said that some interested parties may have been surprised by the speed at which Olympus has done the deal, and that until the takeover completes, there is room for further share price upside.
Any rival bid is likely could be complicated by the US regulators, due to the overlap in the major players' operations. The Nomura analyst Michael King said that the likes of Karl Storz, a leading supplier to the urology and gynaecology markets, may be interested in Gyrus, but the overlap may be too great for US regulators. For Olympus, the overlap between the two businesses is not as stark, with the Japanese company strongest in Japan and Europe, while Gyrus has a more dominant position in the US. ...|
|Bearbull, I think you'll find GYG made £17.5m adjusted operating profit in the last 6 month period, i.e £35m annualised.
Hey, it's bleedin' expensive I agree, but not quite as much as you say!
Who are we to worry about these things? :o))|
|I fail to see the economic logic in this ... £1bn for a co. that made a measly
£10m net/yr max ... or am i underestimating the intellectual property even
with the threat of further patent disputes over the horizon ??? Maybe it was a
case of a decision made in haste after one too many sake's in downtown Tokyo ?
Whatever the reason, 'Arigatou gozaimasu' to the gentlemen involved as I tuck into
my sushi with some of the proceeds of this - fwiw, I sold out at 607 today ...
A bird in the hand and all that .|
|WJ, I noticed that too. Isn't there a rule that states you can't pay less for shares than you've offered within a set period, i.e 630p in this case? Or does that not apply to shares acquired on the open market? In which case I'm surprised they're able to buy at less than 630p - but I'm quite likely wrong or out of date in my understanding!|
|Well it's saving them money since they're buying much of it below 630p.|
|Interesting to see that Olympus have bought almost 30m shares (20%):
Pretty aggressive buying - I suppose they want to land a knockout blow.
As you say Maddox...I agree it's not over yet, though Olympus are trying hard. Still 80% of the shares to go.|
|This is clearly intended to be a knock-out blow at a price that will deter a counterbid and sufficient to get management support. Its a good price, may be even a great price but its not an exceptional price. I think I'll wait for a while and see if this entices another bid.
|Rivaldo, good point on the delayed payment. One in the hand worth two in the bush etc. especially in a falling market.
I feel Olympus have got a fairly good price because of the negative attitude to companies who earn a significant proportion of their profits in US dollars.
As far as I can see since 80% of GYG's expenditure is in dollars it is more the headline figure in pounds which decreases (with no divi to pay in pounds) than GYG's ability to expand in it's lead market of the US.
On that basis I would compare 630 more with the 470-480 level (before dollar worries seriously came into play) than with the direct pre-bid level of 400.
Anyway, having said all that, not unhappy with 610 or so.
Good luck to all.|
|Well done all holders - your patience and faith in Gyrus has been rewarded!
Since wednesday! :-)
I must say I owe shadowtrader a vote of thanks. He's been consistantly +ve on this sector for a while.
With the market well off highs I looked for something in this area and came up with GYG.
Sold this a.m.. missed the top but took 629p.
For the odd penny and brokerage, didn't seem any point waiting.
Mixed feelings though, another chunk of U.K. asset base gone..er..east.
Best of luck for those who stay with it.|
Mixed feelings myself, couple of points:
>> This was going to happen at some stage but there is a lot of value yet to be seen from this business;
>> The bid has come from a very unexpected source;
>> The slide rules will be out over the pond.
This really heightens the profile of Gyrus and there are several others players out there that will be able to see Gyrus fitting very easily as a division into their business. This may not be the end of the matter......
Well done all holders - your patience and faith in Gyrus has been rewarded!