K3 Capital Share Discussion Threads

[robsy2] 17/12/2022 14:08

The 350p price is the minimum required for the execs to get the bonus shares- they are not thinking beyond that.

[poacher45] 17/12/2022 13:08

No but because Sun have spent a fair bit of money I think the institutions will be able to get at least another 20p out of them. Perhaps at the cost to the small shareholders who have sold out over the last and the coming weeks. I note the prospectus is not coming out until January. Often with these deals the prospectus is being printed before the deal is announced. The only people to accept the deal are the directors none of the institutions have said that they are happy or will accept the deal

[spooky] 17/12/2022 12:20

poacher45, do you want to own shares in a company run by management that has already indicated a preference for an alternative corporate structure?

[poacher45] 17/12/2022 11:47

My point is the directors that own 15500000 approx cannot vote. 572255 shares will not make too much difference in the vote. The institutions could easily stop the takeover from happening or force a higher offer.

[robsy2] 17/12/2022 11:22

Thanks sharw. That’s clear now.

[sharw] 17/12/2022 10:42

It is not true to say that the board cannot vote. Read the RNS carefully - the "Independent" directors can vote ... "..the Independent Directors have irrevocably undertaken to do in respect of their own beneficial holdings of 572,255 K3 Shares".

Certain directors and 2 senior employees are not allowed to vote because they have entered into a separate "Rollover" deal which means they will have a stake in the bidding company - again read the RNS carefully.

[robsy2] 17/12/2022 09:42

I didn’t know the bod couldn’t vote. I have a very sketchy knowledge of takeover procedures. Need to learn more about that.

[poacher45] 17/12/2022 08:59

The directors own 20% of the shares and are not allowed to vote. Sun capital needs 75% of the remainder to vote in favour to be able to declare victory. I wonder how happy the institutions are having supported a fund raise just over a year ago at 340p. The company is in a lot stronger position now. This is an extremely miserly low bid. The company only needs three institutions to vote against and then they are stuffed.

[wad collector] 16/12/2022 15:42

Last few yrs it has gone XD in mid Feb so yes there is a potential dividend to be lost as timescale suggests it will not be completed by then. However was only 4p last yr so not a big factor...

[johndoe23] 16/12/2022 12:56

Don't think so. Last div payment in October so next div payment would be March or April after interims

[robsy2] 16/12/2022 11:10

Any divis to be lost if we sell now?

[scooper72] 16/12/2022 10:20

Well the sell price has edged up 1p in the last 90 minutes....

[wad collector] 16/12/2022 09:00

If this goes through, the timescale in the document suggests after meetings that "first half of 2023"
So, if you bear in mind the Meeting in 6-8 weeks , you cannot get the cash until March at least and possibly June or later. The recent EMIS takeover has taken longer than it's initial timescale by months. So , unless you believe a bigger offer coming in , or it will all fall through and that this will be positive to the sp, then sitting on your shares when you can get 340p today will earn you about 3% over 3 to 6 months
I have only a small holding here so am unexcited either way!

[mwj1959] 16/12/2022 08:47

Fund managers always say that they are LT investors, but when they get a reasonable bid premium for one of their stocks against a difficult market backdrop their view invariably becomes very ST!

[rivaldo] 16/12/2022 08:34

Agreed Jpuff, at worst it looks like the deal will go through at 350p, but with this lowball price there's still a chance that someone will come in with a higher offer.

[jpuff] 16/12/2022 08:31

I'm holding on to my shares for now personally. Who knows. It's not over yet.

[poacher45] 16/12/2022 08:26

It is only a done deal if 75% of the institutions vote in favour of it. Because there has been no one else prepared to bid everybody thinks that the institutions will reluctantly accept the offer.

[shanklin] 16/12/2022 08:20

Could somebody please explain how this is a done deal. I have added up the percentages several times and cannot get to 50% let alone the 75% I thought they needed to force this through. TIA

[2bluelynn] 16/12/2022 08:19

Good luck all ....I'm out ,I want to invest in a few other stocks so I've taken myMoney . I hope you all get another offer but farewell and good luck

[2vdm] 16/12/2022 08:09

Well I'm out at 341p with a reasonable profit, but like most above I think this was worth much more than 350p. A real pain that the other bidders dropped out.With the overall market depressed out there, I can put the money to better use. Good luck all.

[robsy2] 16/12/2022 07:06

I am disappointed to have to sell out at 350p.I think the execs have come to the conclusion that being quoted on AIM is costly,gets them skittish investors and makes life difficult.
It is easier for them to have a private equity backer and find additional capital there. The capital markets don't work very well for ambitious well run businesses like this. That is a bad omen.

It was only back in May they had to issue a statement saying they had no idea why the share price was so low...

[johndoe23] 16/12/2022 06:17

After the RNS yesterday, the bid offer should be closer to 350p I'm presuming today? Looks like any hope of a counter bid is gone

[texas_caddy] 15/12/2022 22:52

Thanks davidosh - not entirely clear (to me) from the below on the announcement. Fair to say they are likely only to honour those committed to, and anything after (the “normal” schedule of them) may be stopped? Text from announcement:

19 Dividends

If any dividend is paid or becomes payable in respect of K3 Shares on or after the date of this Announcement and prior to the Effective Date, Bidco has the right to reduce the consideration payable by it pursuant to the Acquisition by an amount up to the aggregate amount of such dividend or distribution (excluding any associated tax credit).

[davidosh] 15/12/2022 22:44

Texas....If dividends have already been announced then they should be honoured