K3 Business Technology Share Discussion Threads

[rogash] 31/7/2012 08:36

They won't be negotiating for less than £2.20,ongoing is promising.

[cb7] 31/7/2012 08:12

Having had experience of lots of takeover situations over the years, it is quite typical for the process to take about six months.

[stegrego] 31/7/2012 07:08

Oh come on, how long do you need to 'discuss' a sale. You are either buying it or not.

[simon42] 25/7/2012 18:32

Well, another 8.3 announcement coming out after the bell today with Hazell Carr buying again which is encouraging. I also noticed Guy Thomas was named in the RNS. Didn't he write Free Capital which interviewed a number of ADVFN traders? I think he used ADVFN himself.
For me this is a positive. It would be nice to wake up to a takeover one morning. Here's hoping.

[glasshalfull] 25/7/2012 16:03

Yep, don't take too much consideration of the trade data. For instance I noticed 50k or 60k shares go through at 165p last week and noticed that it was actually a purchase...with this particular purchaser triggering a Form 8.3 disclosure (check announcement for Hazell Carr Edwards.

There have also been a number of cross trades.

I'm quite certain that we'll get an update in the next day or so which will clarify. Given that we are now 3/4 weeks since completion of finacial year, I presume in absence of a trading update that KBT has traded in line & therefore again would assume theyll deliver earnings c.28p

If so & in absence of any material change to trading then I'd suggest these are good value irrespective of whether a bid comes off. I'm not naive to suggest failure of bid talks would not hit the shares in thevshort term despite the lack of any premium to the shareprice, but if they start to demonstrate value and growth in managed services then I think any short term weakness wold be short lived.

All hypothetical...we'll know more in a few days.

Regards,
GHF

[simon42] 25/7/2012 12:58

More selling going on here today. Bigger than usual. Company hoped to update the market in July on the sale of the business. Clock is ticking and I believe we are overdue an update on general trade anyway.
If the sale wasn't going ahead you'd think they wouldn't bother to leave the market hanging but the recent share sales make me nervous. Good company either way. Any views?

[dpmcq] 18/7/2012 12:57

Phil
It looks like a sale of 5000 shares?

[philo124] 18/7/2012 12:21

Interesting rns; first holding, looked up what they do. Maybe this is our buyer?

[glasshalfull] 02/7/2012 11:34

Link to my post over on the ZULU thread.



KBT doesn't currently qualify as a ZULU but I thought it may appeal.

Regards
GHF

[philo124] 28/6/2012 09:43

GHF Thanks, we hope you are on the money.

[glasshalfull] 28/6/2012 09:01

KBT

As per Orange1's post above, it would appear that we can expect an announcement in the next few weeks in respect of the ongoing bid saga.

My assumption is that there is a strong possibility of an agreed  deal taking place & my logic is simply that we have now had the passage of 4 full months since they announced receipt of "a number of indicative bids", and surely if parties were miles apart we'd have received notice of termination well before now.

Management have required to consider the strategic direction/offers for the company since RNS announcement of 1st Dec 2011, and I'm quite certain that in the absence of news to the contrary we must be close to a resolution. The fact that they documented receipt of a number of bids "materially higher" than the shareprice on 29th Feb 2012 (which stood at 154p mid) and is only 8% higher today, suggests to me that this is a decent risk/reward play at present time.

Sure, should an acceptable bid fail to materialise then these will come off. As mentioned, they were 154p prior to the latest bid announcement and I'm sure failure would knock them back further, but I'd counter this would be on the back of short term sentiment as the underlying business and prospect of 28p EPS would hopefully see recovery in due course as the latter 6 "opportune" acquisitions start delivering.

However, what is the liklihood of an acceptable bid and at what price? 

Market cap is £47.7m (at 167.5p) and add back net debt of £13.3m for EV of £61m. This is for a company forecast to deliver in excess of £10m PTP (via consensus of 4 brokers) and EPS of 28p for year just ending 30th June 2012 & with 30p EPS pencilled in for the year beginning next week. I therefore think that they should command a minimum EV of  £80m which given shares in issue suggests a minimum price of 233p which would place then on a takeout PER of 8 or 40% premium to current share price.

Given my assumptions and calcs I'm a keen buyer at the current price.

Regards,
GHF

[philo124] 23/6/2012 18:30

Thank you.

[orange1] 23/6/2012 13:46

On 1 March 2012, the Company announced the commencement of a formal sale process. The deadline for receipt of indicative proposals was 27 March 2012.

On 4 April 2012 the Company announced that it had received a number of indicative proposals which it was in the process of clarifying. Potential offerors would be given access to a detailed data room and further access to management, following which the Board aimed to be in a position to announce a recommended offer to shareholders during July 2012.

Expect an announcement in July is the obvious answer to the question.

[philo124] 23/6/2012 12:18

Like i posted a few months ago, i bought a business in a day with all legals
finance done start to finish- 14 hours. Either somebody wants it or they don't!

[stegrego] 23/6/2012 12:16

Does appear to be the longest takeover talks in history....

[philo124] 23/6/2012 11:24

Does anyone know WTF is going on if anything?

[felix99] 05/4/2012 09:23

thats a tiemscale for a decent process of due diligence and if its a plc that needs to raise cash to fund a purchase they would need that sort of period to do all the prospectuses etc.

The good news is that there are a few people at the table it appears. The idea being they all do their due diligence and then submit final binding offers without indicative ones subject to caveats about due diligence etc.

Easy to say I will offer £50m subject to DD which means you can come back after DD and say actually its only worth £30m. Like buying a house subject to survey. This way we get survey done first and then have the real offer .

Options will always trigger on a bid so no timing issues there

[philo124] 05/4/2012 08:53

Re update; why would it take to July? Directors' options?

[rogash] 26/3/2012 12:44

Seems Mr.Claesson has increased his holding by 1.5%

[orange1] 22/3/2012 20:03

MMs are very short of stock though. When the price was 192-195 Wins were asking 202 for a purchase of 10000 shares and, wait for it, 231p for a purchase of 20000.

[yump] 22/3/2012 19:55

Felix

Missed that post somehow. Might try a few - the chart looks very 'incomplete'. Nothing ventured as they say.

[felix99] 22/3/2012 18:10

YUMP read my post 771 rofl.

You would have been 10% up by now Mr Hedgie,