K3 Capital Share Discussion Threads

[hubs] 09/12/2022 14:28

Conundrums all round eh? Could be sold for more than £3.50, sale fall through and then what? or, is sold for £3.50.
I've thought about adding, thought about selling. Will go to watch Peter Pan at the school this pm and see if that helps. Having got in about 2.60 a few months ago, would quite happily take 3.50, but understandably disappointing for LTH's...gla.

[2vdm] 09/12/2022 12:14

Well I've added another 1K this morning as firstly I've been a holder for some years and if it does sell at 350p, I'll have made 6% profit on the last tranche, hopefully within 6 months, which I think is a worthile return. I should have waited a bit longer, but hard to call the bottom here due to rumour and nervousness about the bid.

[tizo100] 09/12/2022 12:06

Sun shines on K3 Capital

US private equity firm Sun Capital Partners is in advanced talks with professional services group K3 Capital (K3C) about a 350p share offer for the company.

A bid at that price values the business at £257mn – a 16.7 per cent premium on the previous day’s closing price and a 31 per cent uplift on the average price during the preceding three months, K3 Capital said on Thursday afternoon.

The company said its independent directors would likely recommend an offer, if one is made. Sun Capital is still conducting due diligence. Shares in the company, which made a pre-tax profit of £12.7mn on revenue of £70.7mn in the 12 months to 31 May, closed 8 per cent higher on Thursday at 325p, down 4 per cent since the start of the year. MF

[tizo100] 09/12/2022 12:03

K3 Capital Group (LON:K3C) – Bid Approach Could Spark Counters
This business sales and advisory group is in advanced discussions with Sun Capital Partners concerning a possible 350p a share cash offer from the US group.

The news yesterday afternoon saw K3C’s shares rising 12% to close around 338p.

Although still in the throes of hammering out the details, I wonder whether the market’s dealers are indicating a certain caution by marking the shares up by just 15p on the overnight price?

K3C is currently valued at £248m, while its shares in the summer peaked out at 370p which then put a capitalisation of £272m on the business sales, recovery, corporate finance and restructuring experts.

There have been other parties expressing an interest in talking takeover with K3C – perhaps that is why the market is being reticent in spooking the value just yet.

Holders should sit very tight and await the outcome, which could take weeks well into 2023 to come to fruition.

[dicktrade] 09/12/2022 12:00

Same here. My initial purchase was 150 in July 20 and have added along the way up to 321 this morning,

[rimau1] 09/12/2022 11:12

I’m adding this morning albeit i have a low average as a long term holder. The stock has always been quite illiquid, i think people see what they want to see. For what its worth talks are at an advanced stage, key terms have been agreed and if the buyer pulls out i will add more with any significant fall as i think we are undervalued. Buying at £3.20 and a smidge :)

[adipsia1] 09/12/2022 10:48

Hate to say it Tom, but I agree.My concerns are why the other bidders backed away and what happens if it fails during due diligence. If that happens the price will tank.I've just sold approx. 6,000 shares at 317. I'm holding a grub-stake just in case, but the downside re the above gives me too much cause for concern.

[aishah] 09/12/2022 10:35

Price has been well below 300p for quite a while. So market clearly didn't want to bid up future prospects. A 350p offer doesn't sound that derisory in current climate. Have held for quite a while here and added 50% more at 227p back in May. I'm happy to accept 350p.

Edit - did sell a few in the 280s not so long ago. Still plenty left though. Hopefully we will stay well above 300 now.

[jdh1602] 09/12/2022 10:21

2vdm, also these deals can take many months to go through, even without problems occurring, so it could even be as much as 3-4 months that your capital is tied up. But someone, please correct me - what kind of wait period can be possible here?

[74tom] 09/12/2022 10:09

I think the falling share price is reflecting the following;

- Why are the board so keen to accept a bid of 350p when a broker note last week valued them at 410p and they are rated at a significant discount to FRP?

- Why did the other potential buyers pull out? There must be a reason they didn't want to pay more than 350p / think the business is worth less than that?

- What happens if Sun pull out during DD?

TLDR, is something lurking that shareholders aren't aware of which makes a 350p bid really attractive to the board?

Pre offer you could sell a lot of shares at 312.5p, now it's NT at 320p with PEEL bidding just 300p... says it all.

[doobz] 09/12/2022 10:07

There's still some hope that other offers might turn up, seeing it go for such a steal could entice some of the previous interested parties. Only time will tell. Very sad to see it go at 350

[johndoe23] 09/12/2022 10:04

I am tempted, watch level 2 closely

[adipsia1] 09/12/2022 09:52

Anyone here brave enough to add to their position here ? If the deal goes through at 350 there's still some upside to be had due to uncertainty. The only downside I see - apart from spread - is potential issues during due-diligence process.

[2bluelynn] 09/12/2022 09:24

Might award them selves one -more like

[blueliner] 09/12/2022 09:20

I cannot sell atm, need to wring every penny out of this 'heist', to break even let alone a profit
Perhaps the board will award us naive shareholders a parting dividend for our loyal service.

[tizo100] 09/12/2022 09:00

Some people selling WTF LOL

[gleach23] 09/12/2022 09:00

2vdm...until it's finalised it remains a 'possible' offer with no guarantee that it will go through. The current gap to possible 350p is also a reflection of market thinking chances of a counter bid are low.

There's an interesting contrast to Crestchic who also announced an approach yesterday and where the share price is right up at the possible offer price of 401p.

[saj3] 09/12/2022 08:55

Also if it's cheap at 350p why would you sell now even cheaper

[2vdm] 09/12/2022 08:51

Can anyone please explain to me why the share price is still comparatively low. An offer has been made at 350p, but I can buy via HL at 328.50p, which allows for a potential 6.14% gain. Is it just that the deal hasn't yet been finalised?

[johndoe23] 09/12/2022 08:17

I see LOAD has been bid for, again at a slightly disappointing price. Not as treacherous as here though!

[hastings] 09/12/2022 07:57

Absolutely agree with other comments and only a small profit for me. A counter bid would be nice, but I somehow feel it won't happen. Very disappointed with management given previous conversations I have had and the vision they purported.

[shanklin] 09/12/2022 07:38

Rivaldo

Snap, only re entered K3C in mid October and early November so a great quick result. But do think the BOD are taking the p#£s with their lowball offer. Happy to hang in here and see if there are any other interested parties.

I hadn’t realised K3C had put itself up for sale, so perhaps other potential buyers might also not have been alert to this

[dicktrade] 09/12/2022 07:27

Riv
Not sure I believe there were any other bidders so would think it’s a done deal . Wouldn’t trust this BOD anymore so perhaps lucky to get out at 350 . Should have been a div early 23 but can’t be bothered to look to see what will happen to it . :-((

[robsy2] 09/12/2022 07:20

This deal works well for the Bod i guess. At share price 350p they get their bonus shares agreed under previous deal. They can then strike new deals and carry on their trajectory. They don’t need public ownership.