Iqgeo Share Discussion Threads

[alphabeta4] 16/5/2024 10:37

Do we have any details on a timetable for the proposed takeover?

[p1nkfish] 15/5/2024 11:15

It's done but I still reckon Grid news was held back, just my opinion, no proof.

My thinking is Grid news would have pushed the price up on such illiquidity and out of acquisition price zone.

KKR have bought into a good market via a very decent way to access it.

[red ninja] 15/5/2024 08:45

Investor's Champion pay for tip website comment :-




Stonking Small Cap under offer
IQGeo (AIM:IQG), the provider of geospatial software solutions to telecommunication and utility operators and one of our Stonking Small Cap opportunities has received a takeover offer from funds managed by KKR. This is the second time in the last few months that the private equity giant has swooped on an AIM company in the utility sector, having recently acquired Smart Metering Systems for £1.3 billion.

The cash offer of 480 pence per share values IQG at approximately £333m, a modest 19% premium to the prior day’s closing price, although the shares have been on a decent run.

It will be a shame for AIM to lose another innovative growth company like this.

Shareholders with a combined 58.2% position have already indicated their support for the deal which therefore seems likely to go through.

[p1nkfish] 14/5/2024 16:31

Chance of a competing offer via Take-over is very low but not zero.

With KKR behind them IQGEO will be formidable, it will help capture parts of the Grid market and others may not like that and it become worth them taking action.

[p1nkfish] 14/5/2024 12:38

If you can't beat them join them even for the last few % is better than you can get elsewhere with the same level of risk. IMHO the risk here is now relatively low and this is a done deal.

Didn't Cavendish have a £5 target price?

[p1nkfish] 14/5/2024 12:32

Can buy at 4.7.
If it goes through at 4.8 then it's 2.1% upside.
If it goes through in 3 months it's potentially a 8.5% annual rate of return.
4 months then 6.5% annual.

As it appears to be a done deal that's not too bad. I can't see KKR pulling out and if they do they may have to pay a wad of cash to IQGEO for aborting??

Assumes low dealing charges - should be possible and no charge to sell.

[boadicea] 14/5/2024 12:24

If a sufficiently higher offer arrived (+10% or more), I think the letters of intent might well be withdrawn. If that 18.2% joined the other camp and no others voted the SoA would fail on an 18.2/40 split, giving only a 68.7% majority. The game then becomes open.

[saj3] 14/5/2024 11:50

Will we have to wait for the deal to go through as can only sell at 465p currently

[red ninja] 14/5/2024 11:30

If those 40% are already bound for the deal why would you even bother to go for a counter bid. You would be wasting your time.

Can't see PIs voting in mass against a pay day although it is mathematically possible.
Usually a fair number of PIs just don't bother to vote.

[p1nkfish] 14/5/2024 11:28

There's a longish tale beneath 2% - or at least there was.
It's a stretch to get 25% to agree to vote no.

[boadicea] 14/5/2024 11:22

On a quick read, it appears that irrevocable undertakings amount to 40% of shares (with no provision for withdrawal in case of a higher competing bid) and letters of intent add up to a further 18.2% that is presumably not irrevocable.

The SoA rules require a 75% majority.

So not quite a done deal but would require a lot of private holders to be activated to muster a 25% vote against to scupper the deal, e.g. in the event of a higher competing offer.

[p1nkfish] 14/5/2024 11:12

Agreed - short-termism commoditizes UK business and in turn UK labour over time.

We have clever well qualified & capable people (but not enough) unable to help lift others standard of living in the same country as the very ground under their feet is sold-off to the highest bidder as soon as possible.

[simon gordon] 14/5/2024 10:46

Hysterically, Jeremy Hunt was in the FT this morning stating that the UK can create a $1 trillion tech giant. Chances of that happening on the LSE are extremely remote.

We are becoming the 51st State where American capital comes and buys our tech before it scales.

Dividends, impatient capital and a lack of growth capital are hollowing out our wealth-generating futures.

Having a hedge fund PM is symbolic of British business. It's all about the short-term trade, not the long-term investment.

[p1nkfish] 14/5/2024 10:14

Yes, so be it. Shouldn't complain as a major upside to me personally but I do like to see companies reach fruition, this has only just started to flower imho.

The fact its KKR illustrates the potential.

[red ninja] 14/5/2024 10:10

It is disappointing, but I guess it was likely to end this way.

The directors and large share holders appear to have made irrevocable undertakings of support for offer ie

"This irrevocable undertaking remains binding in the event a higher competing offer is made for IQGeo by a third party;"

[p1nkfish] 14/5/2024 10:02

If Kestrel accept that's it as other larger holders will no doubt jump on board too. Little new large money has been joining by the looks of it.

Not much small fry can do - as usual.

All we can hope is that some other group sees an opportunity to party poop - not read the full release yet to see if there is a hurdle to jump above 480p cash.

Sadly this is just a point where GRID might have started to kick-in and this goes from a highly valued small-cap to an FTSE250 company with growth and real prospects to stand alone.

[mighunter] 14/5/2024 09:52

"Over the last two years, the Company has received numerous unsolicited approaches, but no one has put forward an offer that the Board would be prepared to recommend to Shareholders." Hmmm

[p1nkfish] 14/5/2024 09:47

JD23 - I agree.

[wjccghcc] 14/5/2024 09:47

You can transfer your entire holding (not partial) into unlisted shares in Bidco but given they're likely to raise money, you'll have to participate to avoid dilution. Also, you can't hold unlisted shares in an ISA or many SIPPS so you give up the tax benefits.

Annoying.

[p1nkfish] 14/5/2024 09:46

Well the AGM tomorrow will be congrats all round as the management pat themselves on the back - sold out too early imho.

Ordinary PI's denied the chance to see this reach fruition and address the even larger GRID market.

Frustrated. Could see this reaching £5.50 - £7.25 over time and even joining FTSE250.

[p1nkfish] 14/5/2024 09:41

Well there's the recommended offer.
Personally, I think it a steal for the buyer.

I might even suggest Grid news has been held back and they are getting it as a bargain. Look at how utilities have performed in US over past qtr - XLU - but other signed IQGEO's customers will have more cash to spend on efficiecny drives.

This is a 10x+ for me on original purchase but not happy with the price.

Need to read it further but hope another offer might come in and trump if the agreement allows for it.

Too soon, too early, too small, too cheap.

This sort of thing limits UK PLCs - lack of ambition, sell-outs etc.
Management happy no doubt so options convert quickly.

[johndoe23] 14/5/2024 09:38

Hmm. Got it for cheap if you ask me

[w13ken] 14/5/2024 09:38

Hats off gs, you got that one right! Disappointed that we didn't get to see them grow organically but this has been a great investment. In since 123p...

[mighunter] 14/5/2024 09:36

Takeover KKR, 480p! Well done all

[w13ken] 13/5/2024 08:47

Have you got any sources for that gs or is that just forum speculation? They're definitely an attractive acquisition for a larger company but I hope they stay independent for another 2-3 years to fulfil their potential.